• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 4 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 21 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 22 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 23 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 22 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 21 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 2 days Itt looks like natural gas may be at its lowest price ever.
  • 1 day Saudi A to Splash $100 Bln on India
  • 23 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 2 hours Washington Eyes Crackdown On OPEC
  • 2 days Amazon’s Exit Could Scare Off Tech Companies From New York
  • 20 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY
James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Pemex To Farm Out Production At The Trión Oil Field

Offshore Rig

Mexico’s state-run Pemex announced on the 10th June that it has selected the Trión deep-water field for its maiden farm-out deal to other operators, according to Reuters.

Pemex Chief Executive Jose Antonio Gonzalez Anaya explained at a news conference that the area would require $11 billion worth of investment and will likely be operated by a separate company in conjunction with Pemex. Doing so, he argued, would help “share the risk and costs” of operation along with the Mexican oil giant that recently suffered its fourteenth straight quarterly loss to the tune of around $3.6 billion.

Trión was Pemex’s first discovery in the Perdido Fold Belt in the northwestern Gulf of Mexico near the U.S. border, which is believed to contain approximately 30 billion barrels of oil. Trión itself encompasses an area of some 8.7 square miles and is estimated to have the equivalent of 305 million to 500 million barrels of oil.

Gonzalez claimed that there is a “huge interest” by other firms to participate in the farm out of Trión, though he did not specify how many or which ones. Gonzalez anticipates that Pemex will announce its partner(s) for the Trión project on the fifth of December, when Mexico has scheduled its first auctions for deep-water fields.

Related: $50 Oil Has U.S. Rig Count Increasing For 2nd Week In A Row

Mexico broke up its Pemex energy monopoly in 2013, and the following year announced the farm-out process of fields assigned from the “Round Zero” auction. The plan was then delayed until the Pemex announcement last week, which Mexican energy analysts feel is overdue since the long-term development of oil fields could last from eight to ten years.

Tore Loseth, vice president of Statoil Exploration in the U.S. and Mexico, said the Norwegian firm would be interested in collaborating with Pemex on future farm out agreements, yet refrained from commenting on possibility of joining Pemex at Trión.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News