Petroleos Mexicanos (Pemex) in July plans to offer private companies the opportunity to bid for rights to develop three small natural gas exploration blocks that could produce up to 100 MMcf/d, the company’s exploration and production (E&P) chief said Friday.

The blocks would be offered in an effort to expand international exploration in Mexico, said Carlos Morales, who heads Pemex’s E&P division. Pemex, Mexico’s nationally owned oil and gas company, uses multiple service contracts (MSC) to attract foreign investment in developing gas reserves.

Pemex began offering 15- and 20-year MSCs in 2003 (see Daily GPI, July 18, 2003). Under the MSCs, Mexico continues to own the leasehold while the contractor receives a fee for the works performed and services rendered.

The contracts offered in July would use the same formula, and Pemex would hire the companies for gas exploration in specific areas, Morales aid.

Mexico’s legislature last year approved an incentive-based plan to encourage oil services companies to invest in Pemex. The company now is drafting contracts, and a bidding round for the first contracts could be undertaken before the end of the year, Morales said.

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