Pemex, Chevron, Inpex sign deepwater partnership contract

Tuesday, February 28, 2017

Pemex, Chevron and Inpex Corporation signed a contract Tuesday with Mexico's hydrocarbons commission (CNH) to jointly develop deepwater block 3 in the Perdido belt, after the consortium was awarded the contract in the auction held last December.

The winning consortium offered the CNH an additional 7% of royalties on top of the minimum required, as well as investment in exploration to define the block's production potential.

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Pemex CEO José Antonio González Anaya (pictured) said during the event that, harnessing the tools afforded it by the energy reform, the state oil company is applying international best practices for the development of deepwater fields, which requires sharing technology, knowhow and risk, according to a press release.

Pemex has never developed deepwater resources, where the majority of Mexico's hydrocarbons reserves lie.

The executive said Pemex is a reliable and highly competitive partner that will harness the technical advantage of this and every alliance it enters into in order to strengthen its operations and capacities with the aim of increasing production in an economically viable, safe and sustainable way.

Chevron's president for Latin America and Africa, Clay Neff, said the signing of the contract is an important milestone for the collaboration in which the company and Pemex have engaged for many years and shows that the future of Mexico is also the future of Chevron.

Shuhei Miyamoto, Inpex's vice president for America and Asia, said the company has been present in Mexico for 15 years and this contract will be key to strengthening the relationship between Japan and Mexico to the benefit of both nations.

Block 3 has a depth of between 500m and 1,800m, covers an area of 1,687km2 and potentially contains hydrocarbon reserves equivalent to those in the Trión block, which Pemex will jointly develop with BHP Billiton.