Pemex, BHP Billiton deep water tie-up eyes first well by end of 2017Staff Writer | March 6, 2017
The first-ever joint venture in Mexico's deep waters could begin drilling its first oil well by the end of this year.
Oil exploration Some $11 billion in investments
Javier Hinojosa, Pemex's chief of exploration and production, said in an interview that the two partners could begin developing the project relatively soon.
The drilling of a so-called delimiting well "could happen by the end of this year," while a second, exploratory well would "certainly" go forward in 2018, Hinojosa said.
Both wells are part of a minimum work program set out in the 35-year license contract covering Trion, which also calls for the acquisition and processing of new three-dimensional seismic data.
BHP Billiton was selected to be Pemex's partner on the Trion block at a competitive auction in early December managed by the National Hydrocarbons Commission, Mexico's newly empowered oil regulator.
The partnership is the fruit of a sweeping sector overhaul finalized in 2014 that ended Pemex's decades-long monopoly and allows joint ventures in exploration and production of oil and gas with equity partners.
The Trion project is expected to require some $11 billion in investments over the course of its life. Pemex will not have to contribute funding for the project for at least the next three years. ■