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Trión first oil set for 2023

Written by  Monday, 27 February 2017 14:37

Mexico’s Petróleos Mexicanos (Pemex) expects to carry out exploration activities at Trión this year, with initial production slated to start in 2023.

Image of José Antonio González Anaya, from Pemex Flickr.

Two years following first production, the Mexican national company anticipates Trión to reach its production plateau of 120 MMboe/d by 2025.

Pemex revealed its plans for the deepwater field in its Q4 2016 financial report.

In Mexico’s highly successful deepwater bid round held in December, the country’s National Hydrocarbons Commission (CNH) announced that BHP Billiton won the bid to develop the Trión deepwater field in Pemex's first-ever farmout deal.

BHP Billiton Mexico offered US$624 million to the partnership, gaining operatorship and 60% participating interest of Trión.

The deal will also see 10% of the additional contribution to be a cash payment to the State as a sign in bonus, and the remaining 90% will be destined to additional investment made on behalf of Pemex, the company said.

Pemex also said that an investment of at least $570 million and the additional contribution offered, will allow the company to delay any additional budgetary resources to this specific project for the next four years.

According to Pemex, the corresponding joint operating agreement and other relevant agreements are expected to be entered into within 90 days.

Total estimated investment throughout the Trión’s life is expected to be $11 billion.

“Investment will come as early as 2017 to carry exploratory activities that provide a better understanding of the subsoil,” Pemex said. “Initial production is expected for 2023, and by 2025 the project would reach a production plateau of 120 MMboe/d.”

In December, CNH President Juan Carlos Zepeda estimated first production to start by around 2023. He projected exploration to take another 10 years.

Read more:

Mexico's deepwater round ends in success

Pemex plans aggressive farmout program

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