Mexico awards oil production-sharing contracts

Mexico awarded three out of five production-sharing contracts on Wednesday in the second phase of its historic oil sector opening, comfortably beating the disappointing results of the first phase and giving a boost to the peso.

Mexico's oil regulator awarded a production-sharing contract for the offshore Ichalkil and Pokoch fields on Wednesday to U.S. firm Fieldwood Energy in consortium with Mexico's Petrobal, part of a series of oil auctions aimed at helping reverse a slide in crude output.

The consortium won the development rights by offering the government 74 percent of pre-tax profits, but additional taxes and a basic royalty will still apply.

The shallow water Ichalkil and Pokoch fields, located along the southern edge of the Gulf of Mexico and grouped together as contractual Area 4 in the auction, feature 539 million barrels in remaining oil resources and span 22 square miles (58 sq km).

Also, the oil regulator awarded a production-sharing contract for the offshore Amoca, Mizton and Tecoalli fields to Italy's Eni International. Eni won the development rights by offering the government 83.75 percent of pre-tax profits, but additional taxes and a basic royalty will still apply.

The shallow water Amoca, Mizton and Tecoalli fields on the southern edge of the Gulf of Mexico and grouped together as contractual Area 1 in the auction, feature 196 million barrels in remaining oil resources and span 21 square miles (55 sq km).

The oil regulator failed to award on Wednesday the offshore Xulum field, located along the southern edge of the Gulf of Mexico and known as contractual Area 3 in the auction. It features 539 million barrels in remaining oil resources and spans 23 square miles (59 sq km).

Also, it failed to award the offshore Mison and Nak fields, located along the southern edge of the Gulf of Mexico and grouped together as contractual Area 5. The fields feature 196 million barrels in remaining oil resources and span 21 square miles (55 sq km).

The auction marks the second phase of Mexico's so-called Round One tender launched in July and follows a historic energy sector overhaul finalized last year that opened the sector for the first time in decades to private producers. Two more Round One auctions are scheduled in the months ahead, including an onshore auction in December followed by deep water fields next year.