BHP wins bid to develop a massive deep water oil field in Mexico

Omar Torres/AFP/Getty Images

BHP will be become the operator of, and the 60% owner in, the massive Trion oil field in deep waters of the Gulf of Mexico.

Mexico’s state oil company PEMEX Exploration and Production Mexico will keep a 40% interest in the blocks, about 80 km from the US border, which contain an estimated 485 MMboe of oil.

BHP’s winning bid for Trion includes an upfront cash payment of $US62.4 million ($A83.5 million) and a commitment to a minimum work program up to a maximum of $US320 million ($A428 million).

If the project goes beyond the initial program, BHP will invest the rest of a $US570 million ($A762 million) minimum work contribution and pay PEMEX another $US561.6 million ($A751 million) in cash.

“This opportunity aligns with our strategy of owning and operating Tier-1 assets and provides an opportunity for BHP Billiton to leverage its industry leading deep-water drilling, development and operational expertise to create value in Mexico,” says Steve Pastor, BHP’s president operations petroleum.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.