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Statoil wins licences in Mexico’s deepwater round

Statoil wins licences in Mexico’s deepwater round

Dec 06, 2016
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Norway’s Statoil was awarded two licences in the Saline Basin in Mexico’s converted first deepwater bidding round

The blocks 1 and 3 cover an area of about 5,650 km2 in the largely unexplored deepwater areas of the Saline Basin. Statoil will be the operator of blocks 1 and 3, at 33.4 per cent equity, with partners BP and Total participating equally with the remaining equity.

The blocks awarded are in water depths ranging from about 900 – 3,200 metres. The bid round is Mexico’s first ever tender for deepwater exploration acreage. A total of 10 deepwater blocks were on offer, with four in the Perdido Area and six in the Saline Basin.

“The award grants Statoil access to significant frontier acreage in an underexplored part of offshore Mexico. The blocks are virtually untested, with considerable subsurface uncertainty, but with play-opening potential,” said Tore Løseth, Statoil’s vice president for exploration in the US and Mexico.

The winning bids for both blocks consisted of an additional royalty of 10 per cent (on potential future revenues) and an additional work programme equivalent to 1 biddable well per block. Each block also has a minimum work programme as defined by the authorities, including a variety of geological activities but no required wells.

“The licences awarded reinforce Statoil’s exploration strategy of early access at scale. This further strengthens and develops the optionality in Statoil’s long-term international portfolio,” added Løseth.

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