Trión Deal: Farmout or PSC?
The deal being offered to prospective bidders is not yet clear. The winner is required to spend US$464 million, but is this an Earning Event in a farmout, or Carried Interest in a Production Sharing Contract?
CNH refers to the auction as “farmouts,” but we do not find support in Mexican law for a farmout agreement. Meanwhile, multiple questions are yet without answers, such as the plans of Pemex for the conversion of future blocks and the advantages that Pemex and its new strategic partners would obtain from a relationship in and beyond Trión.
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