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Mexico Moves Forward with Plan to Extract Oil from Deep Waters of the Gulf of Mexico

LADB Article ID: 80014
Category/Department: Mexico
Date: 2016-06-29
By: Carlos Navarro

The state-run oil company PEMEX is moving forward with a plan to extract oil from the deep waters of the Gulf of Mexico. In late June, Mexico’s hydrocarbons regulatory commission (Comisión Nacional de Hidrocarburos, CNH) approved a measure allowing PEMEX to seek a partner to conduct further exploration, and eventually extraction, in the oil field known as Trión 1. Mexican authorities said the Trión 1 is one of two deposits located on the Mexican side of the Perdido Fold Belt, within an area of 285 sq. km. The belt, which straddles the US-Mexico ocean boundary, is off the coast of Tamaulipas. The Trión 1 field is said to hold a combined 485 million barrels of proven, probable, and possible reserves. PEMEX and the energy ministry (Secretaría de Energía, SENER) announced the plans to farm out the Trión 1 field via a licensing agreement. Trión 1 is the first in a series of long-delayed farm-out agreements for areas that PEMEX was assigned in the so-called “Round Zero” auction in 2014. Unlike recent partnership tenders, PEMEX will share in the risks and investments for this field, which could cost about US$11 billion to develop. The deepwater project is the latest phase in the privatization scheme that resulted from energy reforms approved in December 2013 and defined six months later.

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