Mexico’s oil regulator approved on Nov. 4 a final set of business-friendly tweaks to bid rules for a highly-anticipated upcoming auction that will pick a partner for state oil company Pemex to develop its first-ever deepwater project.
The joint venture (JV) covers Pemex’s Trion Field and marks a major step in the opening up of Mexico’s oil industry, a process enabled by a landmark energy reform in 2013 that permits Pemex to enter E&P JVs for the first time.
Trion is located at a depth of 2,500 m (8,202 ft) in the Gulf's Perdido Fold Belt just south of Mexico’s maritime border with the US. The field is believed to contain some 480 million barrels of oil equivalent.
Among the final changes to the bid terms, the oil regulator, known as the CNH, voted to eliminate a provision in the joint operating agreement that would have given Pemex the power to unilaterally remove the oil company chosen to operate the project.
The CNH also voted to eliminate a cash bond that was included in the joint operating agreement, leaving just a bond set out in the license contract, as well as specifying that the operator will have the “decisive vote” in the event of any work program disagreements.
The CNH previously voted to lower Pemex’s minimum stake in the project from 45% to 40%.
The license contract, similar to a concession, will be awarded on Dec. 5, the same day that the regulator will also auction 10 separate deepwater fields, including four that surround Trion.
Pemex has estimated that the Trion project will require a total investment of about $11 billion.
Recommended Reading
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
President: Financial Debt for Mexico's Pemex Totaled $106.8B End of 2023
2024-02-21 - President Andres Manuel Lopez Obrador revealed the debt data in a chart from a presentation on Pemex at a government press conference.
From Restructuring to Reinvention, Weatherford Upbeat on Upcycle
2024-02-11 - Weatherford CEO Girish Saligram charts course for growth as the company looks to enter the third year of what appears to be a long upcycle.
TechnipFMC Eyes $30B in Subsea Orders by 2025
2024-02-23 - TechnipFMC is capitalizing on an industry shift in spending to offshore projects from land projects.
NOV's AI, Edge Offerings Find Traction—Despite Crowded Field
2024-02-02 - NOV’s CEO Clay Williams is bullish on the company’s digital future, highlighting value-driven adoption of tech by customers.