The Mexican government estimates fields in Round 2.3 contain 251 MBOE of recoverable resources
International Frontier Resources (ticker: IFR) announced Monday that its 50/50 joint venture company Groupo Idesa, Tonalli Energia, is one of 12 companies and seven consortiums named by Mexico’s energy regulator to qualify to bid in onshore Round 2.3 of Mexico’s energy reform.
Other bidders for the 14 onshore blocks going up for auction are from Mexico, Canada, the U.S., China, Colombia and Uruguay.
Concessions are to be awarded under a license contract model for exploration and production that will last 30 years and can be extended for a maximum of two additional terms of five years each.
The assets for auction in Round 2.3 encompass 2,595 square kilometers available nationwide: six in the Southeastern Basin, four in the Burgos Basin, three in the Veracruz Basin and one block in the Tampico-Misantla Basin. The Mexican government estimates that the blocks contain total prospective exploration resources of approximately 251 million barrels of crude equivalent and remaining original extraction volumes of approximately 328 million barrels of crude oil equivalent.
The Tecolutla Block, which IFR won in Round 1.3, established the company in Veracruz State. The company is working with Grupo Idesa, a multi-billion dollar petrochemical company, on Tonalli. The partnership gives the JV a stronger balance sheet, allowing it to bid on more fields, and gives the company strong local ties and expertise, IFR President and CEO Steve Hanson told Oil & Gas 360®.
“Grupo Idesa has facilities, ports, trucks, infrastructure, and they have people that understand the unions, the community and local issues,” said Hanson. “If you go down there and you’re perceived as a foreign company trying to take advantage of the situation, you’re going to run into trouble.
“Tonalli Energia is a Mexican company. We want to ensure that the interests of the local community and the country as a whole are a factor in our operations.”
IFR board of directors includes people with deep experience working in Mexico.
In July of last year, International Frontier Resources, announced the appointments of Colin Mills and Quesada Morales. Mills’ background includes a number of executive roles with TransAlta Corporation, one of Canada’s largest publicly traded power companies. During his tenure, he held key positions including Director General and Chairperson of the Board of TransAlta Mexico.
Quesada is a former Petroleos Mexicanos (Pemex) board member and CFO. He is currently managing director with Alvarez & Marsal, Mexico, a financial and regulatory consulting company, and brings 20 years of experience in financial and strategic consulting including key positions within Mexico’s public sector. He has worked extensively in the energy and oil and gas sectors, helping companies in Mexico, Brazil, Chile, Argentina, Spain and South Africa.
At Pemex, Quesada was responsible for treasury, budgeting, accounting and risk management for one of the largest Latin American corporations.
