Pemex enters first E&P JV

Mexican NOC Pemex and IOCs Chevron and Inpex signed a joint venture agreement on Tuesday to explore and develop Perdido Fold Belt Area 3.

The block was awarded during a December 5, 2016, deepwater auction, the fourth and final phase of Mexico’s first-ever exploration and production licensing round.

The consortium was the only party to bid on the 1,687-square-kilometre block, and offered a 7.44% royalty for the licence.

Perdido Fold Belt Area 3 sits in water depths of 500-1,800 metres and is estimated to hold 971 million boe in 2P reserves, which include light and extra-light crude.

Over the four-year exploration phase, the companies are required to invest a total of MXN 100 million (USD 5.03 million), according to a Pemex press release. The work programme entails exploratory studies and will not include drilling operations.

Chevron will operate the block with a 33.3334% interest, while Pemex and Inpex each hold participating 33.3333% interests.