Round 1, Tenders 1, 2, 3 and 4 of the National Hydrocarbons Commission CNH (CNH-R01-L01/2014, CNH-R01-L02/2015, CNH-R01-L03/2015, CNH-R01-L04/2015) has 54 contractual areas located within the “Cuenca del Sureste” oil province in shallow waters of the Gulf of Mexico, in the “Cinturón Plegado Perdido and Cuenca Salina” oil provinces in deep waters of the Gulf of Mexico and in 3 geographical areas identified as: Campos Burgos, Campos Norte and Campos Sur in onshore areas of the states of Nuevo León, Tamaulipas, Veracruz and Tabasco for the extraction of hydrocarbons.

The Exploration and/or Extraction of Hydrocarbons in these areas are carried out through contracts: 1) production sharing; if the operator finds and extracts hydrocarbons, it must pay the state the percentage of production over its operating profit that it offered in the tender once it has recovered its costs; and 2) license type; if the operator finds and extracts hydrocarbons, it must pay the state the percentage of production over its gross profit that it offered in the tender.

It's important to clarify that the entire exploration risk is borne by the operator; that is, if the assigned operator doesn't find economically viable hydrocarbons for extraction, the Mexican government would pay nothing.