petroleos mexicanos, pemex, oil and gas, mexicoPemex will not participate in Round One bidding of oil tenders, which will announce on July 15 the results of a historic first step in the opening of the country’s energy industry.

“You have to keep in mind two factors. Pemex has seen its revenues fall by more than 50 percent due to the decline in oil prices,” Energy Secretary Pedro Joaquin Coldwell told foreign correspondents on Wednesday in announcing the company’s decision.

Pemex also obtained 83 percent of Mexico’s proven and probable reserves and 21 percent of its potential resources in a so-called “Zero Round” of non-competitive bidding last year, he recalled, adding that the company therefore “deemed it better to concentrate its resources” on future bidding processes.

Eighteen individual private companies, including ExxonMobil and Chevron, and seven private consortia are competing in the phase-one auction of 14 shallow water exploration blocks off the Gulf Coast states of Campeche, Tabasco and Veracruz.

The bids will be unsealed on July 15 and the winners will be announced that same day.

The Energy Minister lowered expectations ahead of the awarding of the first contracts by saying that because of the current oil-price scenario it would be acceptable if between 30 percent and 50 percent of the contracts on offer are awarded.

The initial 14 blocks will be awarded in the first of five phases of Round One, which comprises a total of 169 onshore and offshore blocks.

Mexico Infrastructure Projects Forum 2015 in Monterrey Nuevo Leon