In October 2017 the National Hydrocarbons Commission (CNH) announced the tender for the commercialisation of hydrocarbons that the state obtains as consideration in exploration and extraction contracts.
The CNH indicated that the tendered services will constitute "pure marketing" and will consist of the company that wins the tender selling the hydrocarbons when they are delivered by the private company that extracted them.
The commercialisation contract will be valid for three years and will cover products that are obtained only from joint production contracts. This is because contracting a marketer is not required in licensing contracts, as under the licensing contract model:
- any hydrocarbons produced are marketed by the contractor itself; and
- the state receives the respective consideration in money (and not in barrels).
The bidding process covers:
- Item 1 – commercialisation of liquid hydrocarbons (oil and condensate); and
- Item 2 – commercialisation of hydrocarbons in the gaseous state (C1 to C5 +)
Bidders can submit proposals and be awarded the contract for one or both items.(1)
This action is another example of the new business opportunities that the recent energy reform has introduced.
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For further information on this topic please contact Mauricio Lievana at Ibáñez Parkman y Asociados SC by telephone (+52 55 5250 5912) or email ([email protected]). The Ibáñez Parkman y Asociados SC website can be accessed at www.i-parkman.com.
Endnotes
(1) The complete bidding rules are available here.
