US-oil firm Northcote Energy has confirmed that it is participating in Round 1 of Phase Three of Mexico’s onshore oil and gas licensing.
The company said it is currently preparing its pre-qualification package to enter the process.
Although participating independently of its associate MX Oil, Northcote said it still anticipates working separately on opportunities with MX Oil.
Northcote vice president Abraham Achar, said: “We believe this is a natural next step to leverage the relationships and business activities in which we are already engaged in Mexico, such as the ongoing construction of our first scalable environmental waste remediation facility in the State of Tabasco.”
“We are very excited to have this opportunity to potentially increase our activity in what we continue to believe will be the most exciting energy story for the next decade.”
Twenty six land contract areas are set to be auctioned off to oil companies during Round 1 of Phase III, which is one part of the Mexican government’s effort to reopen the country’s oil industry after decades of state monopoly.
Oil companies competing in the next phase of the Round One auction will know the minimum level of profits demanded by the government prior to the auction, the sector regulator said last week, in a bid to raise investor interest.
The oil regulator, National Hydrocarbons Commission (CNH in Spanish), also said it will offer companies the possibility to conduct additional exploration and extraction beyond reserves that have already been discovered.
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