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Petronas confirms award for 2 Mexico deepwater blocks

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Written by Syndicated News

KUALA LUMPUR, Dec 9 2016 : Petronas has confirmed that it has been awarded deep water Block 4 and Block 5 in the Gulf of Mexico’s Salina Basin, following Mexico’s first-ever auction of its deep water exploration areas.

In a statement, the national oil and gas company said Block 4 was awarded to a 50:50 partnership between PC Carigali Mexico Operations, SA de CV (Petronas Mexico), a wholly-owned subsidiary of Petronas, and Sierra Oil & Gas S de RL de CV.

It said Petronas Mexico would be the operator of Block 4, an area of about 2,600 square kilometres (sq km) in water depths of between 800 metres and 1,600 metres.

“The initial exploration period is four years where Petronas Mexico and Sierra will concentrate on seismic data acquisition and processing,” it said.

Block 5, on the other hand, was awarded to a consortium led by Murphy Sur, S de RL de CV (30 per cent), with partners Petronas Mexico (23.34 per cent), Ophir Energy (23.33 per cent) and Sierra Offshore Exploration (23.33 per cent).

Block 5, which covers an area of about 2,600 sq km in water depths of 700 metres to 1,100 metres, would be operated by Murphy Sur, with a four-year initial exploration period including a work programme commitment of one well.

Petronas Vice-President of Exploration, Upstream, Emeliana Rice-Oxley said the company’s entry into Mexico’s deep water arena provides a strategic fit for its business growth, focusing on upstream exploration opportunities and portfolio with potential for long-term value. – Bernama

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