Oil And Gas: Pemex Announces Bidding Process For Trion Block - Government - Mondaq Mexico - Mondaq Business Briefing - Books and Journals - VLEX 646410349

Oil And Gas: Pemex Announces Bidding Process For Trion Block

Author:Mr Alberto de la Parra, William (Scott) Prescott Mills Schwind, Salvador Gallo and Francisco Pams
Profession:Jones Day

During Mexico's "Round 0" selection process, state-owned Pemex enjoyed the preferential right to designate those onshore and offshore oil fields that Pemex wished to develop. Among the blocks selected by Pemex is the ultra-deepwater Trion block, located 30 kilometers south of the maritime border between Mexico and the United States in the Gulf of Mexico and 200 kilometers east of Matamoros. Having a total area of 1,250 square kilometers and with a water depth of approximately 2,500 meters, the Trion block borders several of the deepwater blocks that will be auctioned in December 2016 as part of Mexico's Round 1 sale process. Pemex estimates that the Trion has probable reserves of approximately 485 million barrels of oil equivalent, which is roughly equal to the total probable reserves of all other Round 1 blocks combined, and it will require upward of US$11 billion to develop. On July 27, 2016, Pemex and the Mexican National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos or "CNH") published in the Mexican Official Gazette the terms of a bid process to award to one or more private investors the right to partner with Pemex to develop the Trion block. A private investor will be the operator, and the operator must hold a working interest of between 35 percent and 45 percent of the Trion block. Pemex will be required to hold least a 45 percent working...

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