Pemex would invest with BHP Billiton until 2022
Pemex would invest until 2022 in the development of the deepwater Trion block, in which it is allied with the Australian BHP Billiton.
In 2017, both companies signed the license agreement for the development of the deepwater Trion block, in what was the first farm out exploration and production partnership that Pemex had made in its history.
In accordance with the terms of its offer, BHP Billiton Mexico made a contribution of $ 789.6 million to the company in exchange for a 60% interest in the Trión Block.
BHP Billiton México will be the operator of the Trión block, and must invest 1.9 million in the exploitation of Trión before Pemex is obliged to invest in the project, which will probably not occur until 2022, according to the Mexican oil company.
The corresponding joint exploration and production contract, together with the operating agreement and other relevant agreements were signed on March 3, 2017, and the National Hydrocarbons Commission (CNH) determined the exploration plan in February 2018.
As of December 31, 2019, this farm out is in the exploration and evaluation stages.
The Trion block, discovered by Pemex in 2012, has total 3P reserves of 485 million barrels of crude oil equivalent, so there is certainty of its commercial viability.
BHP Billiton is the largest oil miner in the world, with more than 150 years of history and presence in 12 countries. It has successfully developed wells on the US side of the Gulf of Mexico and has one of the lowest accident rates in the industry.
On July 28, 2016, the CNH published the public offer and the tender package to select a partner for Pemex Exploración y Producción to carry out exploration and production activities in the field assignments of the Trión block located in the Perdido belt. Fold in the Gulf of Mexico.
Since the Trión block is over 2,500 meters deep, it requires a high level of technical experience and financial investment to develop.