Northcote Energy has withdrawn from the pre-qualification process for Mexico’s next licensing round.
The company said it had made the decision on advice from Mexican counsel that withdrawal would preserve its participation rights with MX Oil. It would also preserve its ability to participate in future bid rounds, enter into farm-out agreements with state-owned Pemex or other industry partners.
The company had already entered the data room and submitted its pre-qualification materials to the National Hydrocarbons commission (CNH) in respect to its intention to qualify and then participate in the bidding of third phase of Round 1.
Northcote’s technical understanding of the licences and regional potential gained through the data room put it in a strong position to potentially negotiate with other successful bidders, once the winning bids are known.
Northcote added that it is very confident in the strength of the MX Oil consortium.
Northcote managing director Randall Connally, said: “Our commitment to Mexico should not be underestimated, we maintain direct, de-risked exposure and access to the bid process through our agreement with MX Oil, which alongside warrants, confers us the right to participate at a level of up to 20% of their interest in any project they secure.”
“In the meantime we are getting on with the work at Shoats Creek where the infrastructure work is underway, being a key step towards unlocking the enormous value in that field.”
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