Mexican oil and gas company Pemex and Australian company BHP Billiton have inked a deal for the development of the offshore deepwater Trion Block, located in the Gulf of Mexico (Mexican part), whose reserves currently stand at 485 Mboe (in the top 10 fields discovered in the Gulf of Mexico in the last decade).
BHP Billiton and Pemex will jointly realize the exploratory studies and a work program. The development of the Trion project will require an investment of US$11bn and will take six or seven years to reach the production phase, with an average production level of 100,000 bbl/d. The agreement includes a commitment to deliver at least a minimum work program which consists of the drilling of one exploration well, one appraisal well and the acquisition of additional seismic data. BHP Billiton's bid includes US$62.4m of upfront payment and the commitment to deliver this work program worth US$320m.
Pemex's Board of Directors approved the development of the block in June 2016 and the Mexican National Hydrocarbon Commission (CNH) awarded the block development to BHP Billiton in a December 2016 tender. BHP Billiton will then acquire a 60% stake and operatorship of the project, while Pemex will retain a 40% interest in the block.