MEI 809.1 — Seeking Synergy in Perdido: Pemex offers too little, too late
This report (MEI 809) was finished on June 5. Its purpose was to identify contract models that could serve for IOC partnerships in Pemex’s blocks, with special reference to blocks that might auctioned in tandem with those in Round 1.4, scheduled for December 5, 2016.
On June 10, Pemex’s director general announced that Pemex’s board of directors had approved recommending the development of two of its blocks in the deep water Perdido Area with partners. The blocks are located in the the area that separates the two sections of CNH Block 1 of Bid Round 1.4. Since then, no additional information has been released.
In this updated report (MEI 809.1), we show that there is a 3rd Pemex block in the Trion Area (AE-94), a working interest in which should be offered to complement the acreage of Block 1. We expand our discussion of options for partnership in Pemex’s acreage.
We conclude that there is insufficient time in the 2016 calendar to organize an auction for the Trion leases. For this reason, the bidding for Block 1 should be rescheduled for 2017.
It would be a strategic setback for both Pemex and the government if the auction for deep water blocks were to include only non-legacy blocks. Such an outcome would leave Pemex with 100% working interest in deep water acreage where it has neither the capital nor technical resources to develop.
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