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Chevron-led JV inks Mexico deepwater pact

Written by  Wednesday, 01 March 2017 10:21

Chevron and Inpex will make their entry into the Mexican Gulf of Mexico, following an agreement signed between the US supermajor, Japanese giant, and Mexico’s Petróleos Mexicanos (Pemex), for the exploration of Block 3 North in the Perdido Fold Belt.

Pemex CEO José Antonio González Anaya speaking at the Block 3 signing. Image from Pemex.

The block was awarded to the consortium in Mexico’s deepwater Round 1.4 in December, which only requires exploration studies to define commercial hydrocarbons. No drilling at the block is required. An investment of about US$5 million is estimated for the first four years of the initial exploration period.

The trio gathered in Mexico City yesterday (28 February) to firm up their alliance for the block.

Chevron will serve as the operator of Block 3, in which the trio was the only bidder of the area with an estimated 971 MMboe. The consortium bid a value of additional royalty of 7.44%, and an additional investment factor of 0%.

Block 3 North is off the coast of the state of Tamaulipas, approximately 100km from the shoreline, at 500-1800m water depth, to the southwest of the Trion block. The area spans some 1687sq km, and has the potential of containing hydrocarbons similar to Trion.

At the event, Pemex CEO José Antonio González Anaya, pointed out that the company is taking advantage of the tools of the Energy Reform, applying the best international practices to boost the development of deepwater fields, for which the necessary technology is very specialized and it is necessary to share the high risks that it entails.

He assured that Pemex is a reliable and highly competitive partner, and with the pact, will take advantage of the technical advantages of the alliance to strengthen the company’s operation and capabilities that will allow it to increase its production platform in a profitable, safe and sustainable manner.

Clay Neff, Chevron’s incoming president for Latin America and Africa, said that new alliance marks an important milestone in the collaboration that Pemex and Chevron have kept up over many years, and it is also evidence that Mexico’s future is also the future for Chevron.

Shuhei Miyamoto, INPEX VP for the Americas and Africa, said that this contract will be the key to strengthen the bond between Mexico and Japan, benefitting both countries.

The relationship that Pemex maintains with Chevron and INPEX in Round 1.4 marks the beginning of further joint participations in future bidding rounds, Pemex said, in addition to seeking an active collaboration in international hydrocarbons exploration and production opportunities.

For Chevron and INPEX this JV marks their entry into the Mexican portion of the Gulf of Mexico. For Pemex, this is its first alliance since the Energy Reform, which will allow for a joint deepwater exploration.

The event, held at the Pemex Tower in Mexico City, was attended by the Secretary of Energy Pedro Joaquín Coldwell, CNH President Juan Carlos Zepeda, and STPRM General Secretary Carlos Romero Deschamps.

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