BHP Billiton / Pemex farm-out

Overview:

• In March 2017, Pemex, the state-owned Mexican oil company formed an agreement with BHP Billiton, an Australian mining and petroleum company, to develop the Trion Block.
• BHP won the bid to develop the block in December 2016, during Mexico’s deep-water hydrocarbon tender.
• This is Pemex’s first oil farm-out. • The block is more than 2500 metres deep, and could produce over 100,000 barrels of crude oil per a day.
• The farm-out was made possible by 2013 laws that opened Mexico’s hydrocarbon sector to private investors.

Rani Mehta - Journalist