OREANDA-NEWS. Mexico modified the contract terms for deepwater blocks in an effort to attract more large oil companies with the capital and experience needed to tackle them.

A much-awaited tender for 10 blocks, the fourth tender in the country?s historic Round One, will take place on 5 December.

"The original contract had a perspective that was a little more orientated in favor of the government, but these changes make the contract more balanced," says Miguel Angel Labardini, a partner at Mexican law firm Marcos and Associados.

The most important changes to the tender documents and contract, which were originally published on 16 May, include the ability to extend exploration periods where activities are already underway, and the flexibility for consortium members to replace a partner that is endangering contract compliance, without having to terminate the contract itself.

This would be particularly useful for consortium partners looking to replace an operator that is not fulfilling his obligations, said Labardini.

The new exploration terms also include a requirement to submit a compliance certificate within 60 days of completion of each exploration period and a penalty for late delivery of an exploration plan.

Change of control notification provisions have also been streamlined so that only a consortium as a whole is required to seek approval for changes in management or operational control.

The original provision sought approval for any changes in control from each consortium partner, a clause that was seen as impractical.

Major oil companies, which have an extensive presence on the prolific US side of the maritime border not far from some of the Mexican acreage, are considered top candidates to operate the blocks, in likely consortiums with a minority presence for state-run Pemex.