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Mexico finalizes 7 deepwater pacts

Written by  Monday, 13 March 2017 11:48

Mexico’s National Hydrocarbons Commission (CNH) finalized seven deepwater Gulf of Mexico contracts, as part of the country’s Round 1.4 held last year.

Image of Mexico’s Energy Secretary Pedro Joaquín Coldwell, from SENER.

Contracts were completed in the Perdido Fold Belt, and Salina basin.

In the Perdido Fold Belt, contracts with China’s CNOOC for Area 1 and 4; and with the joint venture of Total and ExxonMobil for Area 2 were completed.

In the Salina basin, CNH finalized deals with the JV of Statoil, BP and Total for Areas 1 and 3; the JV of Petronas and Sierra Oil & Gas for Area 4; and the JV of Murphy Oil, Petronas, and Sierra for Area 5.

The contracts are for a duration of 35 years, and come with two options: the first being up to 10 years; and the second, up to five years.

The seven blocks together comprise an area of 17,000sq km, and have prospective resources of up to 2 billion boe. 

Overall, CNH has estimated that the total investment will exceed US$30 billion, which will be spent as the development of each block progresses.

According to Mexico’s Energy Secretary Pedro Joaquín Coldwell, the investments associated with the eight blocks awarded in Round 1.4 will amount to $34 billion, almost five times what was obtained with the first three tenders of Round One.

On 3 March, Pemex and BHP Billiton finalized their deal to jointly develop the deepwater Trión discovery, offshore Mexico.

Mexico’s highly successful Round 1.4 took place on 5 December in Mexico City, where eight of the 10 blocks were awarded.

Read more:

Pemex, BHP Billiton make Trión pact official

Pushing forward (From OE's 2017 Mexico Offshore Supplement)

Trión first oil set for 2023

Mexico's deepwater round ends in success

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