OREANDA-NEWS. Mexico has signed its first production-sharing contracts for acreage opened to private-sector investment by a profound energy reform enacted just over a year ago.

A consortium led by Houston-based Talos with Mexico's Sierra Oil and Gas and the UK?s Premier Oil signed the contracts for two shallow-water exploration blocks on 4 September.

The consortium won the only two blocks awarded in Mexico?s inaugural upstream tender that covered 14 shallow-water exploration blocks in the Gulf of Mexico. The tender was awarded on 15 July.

The 30-year production-sharing contracts include an initial exploration phase of four years, which can be extended for another two years if the consortium complies with its minimum work commitment.

Provided commercial success, the government will collect a minimum 74pc of the profit share on the Block 2 and 83pc for the Block 7. The consortium committed to invest 10pc more than the minimum required work commitment on each block.

Overall, Mexico?s energy ministry said it expected the firms to invest an average of around $1.35bn per block.

A second tender covering the auction of nine shallow-water development blocks, divided into five production-sharing contracts, will be awarded on 30 September. Oil regulator CNH has pre-qualified 20 firms to participate, either individually or in consortiums.

A third auction for 25 onshore, mostly mature blocks will take place on 15 December. The third tender has generated a brisk turnout. As of 31 August, 95 firms had shown interest, 80 of which have been given access to geological data.

The presentation of a much-awaited deepwater tender has been postponed to an unspecified date because of the fall in global oil prices since mid-2014, which has pushed the Mexican government to revise the bidding requirements and contract terms.