Publications & Events

Trion Farmout

On July 28, 2016, the Mexican National Hydrocarbons Commission ("CNH") published a call for tenders and the corresponding bid guidelines (the "Bid Guidelines") for the International Public Tender CNH-A1-Trion/2016 process, to select a partner for Pemex Exploración y Producción ("PEP"), the productive subsidiary entity of Petróleos Mexicanos, to engage in upstream activities under a deepwater license contract (the "Contract") in the contractual area known as Trion (the "Trion Tender").

The Trion Tender involves the first farmout offered by the Mexican Federal Government since the enactment of the Energy Reform in August 2014. The proportions of the contractor's share in the execution of exploration and production activities must be split between PEP at 45%, with the remaining 55% to be assumed by the winning bidder (the "Winning Bidder"). The Winning Bidder must necessarily be a joint bidder consisting of either a joint venture or a consortium (the "Joint Bidder"), the members of which must consist of at least two operators (each, an "Operator"), one of which must be appointed as a designated Operator (the "Designated Operator"); and, as applicable, other non-operating parties may participate as financial sponsors (each, a "Financial Sponsor").

The Winning Bidder must enter into a joint operating agreement with PEP, which is part of the Bid Guidelines documents (the "Joint Operating Agreement"), and which establishes, among other aspects, that the equity structure between the aforementioned parties with respect to the Contract rights and obligations must be as follows:

Contractor Parties

Equity Interest

Pemex Exploración y Producción


Designated Operator

30% (minimum) to 45%


10% (minimum) to 25%

Financial Sponsor

10% (maximum)


Clarification Stages of the Trion Tender

For the purposes of the Trion Tender, the CNH will hold the following two electronic clarification stages:

(i) questions and answers regarding access to information in the Data Room as well as the registration stages; and

(ii) questions and answers regarding the prequalification stage, integration of bidders, presentation and opening of proposals, awarding, award notice, Joint Operating Agreement and Contract.


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Juan Carlos Luna, an associate at White & Case, assisted in the development of this publication.

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