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BHP Billiton, Pemex firm up deal on deep-water oil project in Mexico

BHP Billiton, Pemex firm up deal on deep-water oil project in Mexico

Mar 05, 2017
2 min read
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Australia's BHP Billiton and Mexico's Pemex have signed a deal to complete work on the significant Trion discovery located in the deep-water Gulf of Mexico offshore Mexico.

In December 2016, BHP Billiton successfully bid to acquire a 60 per cent participating interest in and operatorship of blocks AE-0092 and AE-0093 containing the Trion discovery. The agreement includes a commitment to deliver a Minimum Work Program, which consists of drilling one appraisal well, one exploration well and the acquisition of additional seismic data.

Steve Pastor, BHP Billiton President Operations Petroleum, said the Trion agreement was consistent with the Company’s focused approach to conventional oil exploration and development of high quality deepwater oil prospects.

‘‘We have a long history as a top operator in the Gulf of Mexico and we are excited to bring our operational expertise to the partnership with Pemex,” Pastor said.

Speaking on the agreement, Pemex CEO José Antonio González Anaya said, “This agreement constitutes a parting of the waters in the history of Pemex. For the first time, an area assigned during the Round Zero auction, will be progressed in partnership with a world leading company.”

BHP Billiton’s bid for Trion includes an upfront cash payment of US$62.4 million and a commitment to a Minimum Work Program (estimated at $320 million).

Pemex will retain a 40 per cent interest in the blocks. Pemex estimates the gross recoverable resource to be 485 MMboe.

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