Mexico has launched the first call for the upcoming Round 2 bidding round, covering 15 offshore blocks, to be held in the first quarter of 2017.

Successful bidders for the blocks located in shallow water of the Gulf of Mexico will sign a production sharing contract for 30 years with two possible extensions of five years.

The blocks are located along the coasts of Tampico, Misantla, Veracruz and southeastern Gulf of Mexico area, covering a surface of around 8,908 square kilometers.

As for the deadlines set within a production sharing contract, the oil companies will be given four years for the initial exploration period, plus an additional time of up to two years.

After that, subject to an oil and gas discovery, the license owner will be given up to two years after the discovery for evaluation.

Following a potentially successful outcome of the discovery evaluation, a development period of 22 to 32 years will begin.

Regarding the local content requirement, Mexico’s national hydrocarbons agency said it would be set at 15% to 35%, based on the project maturation.

The bidding and the awards of the offshore blocks are scheduled for March 2017.