Petroleos Mexicanos (Pemex) and Australia’s BHP Billiton Ltd. have signed a memorandum of understanding and cooperation (MOU) to exchange technical knowledge, information, experiences, and practices in activities related to the oil and gas industry, particularly in the deepwater Gulf of Mexico.
Tim Cutt, BHP Billiton Petroleum and Potash president, said, “We see considerable opportunity in Mexico following the recent economic reforms, and we are excited about the deepwater and the extension of the Paleogene play into the Perdido play.”
Pemex in 2012 made the first crude discovery in the gulf’s Mexican waters with an exploration well in the Perdido fold belt (OGJ Online, Aug. 30, 2012). Preliminary evaluations at the time indicated the presence of 350 million boe proved, probable, and possible reserves.
Earlier this week, during Baker & McKenzie’s Energy Forum in Houston, a Pemex official mentioned that joint ventures are being considered for two fields in the Perdido area (OGJ Online, Sept. 23, 2014).
Cutt emphasized BHP’s operational and cost efficiency in the deepwater gulf, where facilities “have some of the highest operational uptimes and safety records anywhere in the world.”
He specifically highlighted BHP-operated Shenzi field, where production from its 100,000-b/d platform launched in 2009, and quickly exceeded the facility’s nominal design capacity (OGJ Online, Sept. 10, 2009).
“Shenzi is an excellent example of what we can do and the deep capacity we possess within our offshore organization,” he said, touting its time from discovery to first production, drilling costs, safety record, 95% uptime, and sustained production.
Elsewhere in the gulf, BHP’s Deepwater Invictus drillship arrived in May for work. The company also has design and development experience from building the gulf’s Neptune platform (OGJ Online, June 18, 2007); as well as the Stybarrow and Pyrenees floating production, storage, and offloading vessels in Australia (OGJ Online, Nov. 29, 2005; Mar. 1, 2010).
Pemex also signed similar agreements with Argentina's YPF SA, Malaysia's Petronas, and India’s ONGC Videsh Ltd. Emilio Lozoya Austin, Pemex's chief executive officer, said the agreements demonstrate the company's interest in attracting new technologies, capital, and partners to enable Pemex to improve hydrocarbon production and effectively compete in the new Mexican market.
