“Hogan Lovells and Thompson Knight ink first Pemex farm-out”
Hogan Lovells BSTL has helped Mexican state oil company Pemex enter a hydrocarbon exploration joint venture with Australian miner BHP Billiton worth US$14 billion in its first ever farm-out. The JV will develop the Trion offshore hydrocarbon block, located 200 kilometres east of the coastal city of Matamoros. Pemex retains a 40% stake in the field, while BHP controls 60%.
BHP turned to Thompson & Knight LLP’s Monterrey, Mexico City, Houston and Dallas offices for the deal, which was signed on 6 March.
Hogan Lovells partner Carlos Ramos says the deal proves Pemex can compete in Mexico’s reformed energy sector. “Pemex’s engagement with an international oil company demonstrates that it is ready and eager to engage in the market as a serious participant,” he says. BHP will make the initial investments in the Trion field, so Pemex can allot its resources to a wider range of upstream projects, explains Ramos.
Counsel to BHP Billiton
Thompson & Knight LLP
Partner Gabriel Ruiz and associate María Luisa Licón in Monterrey; partner Luis Moreno and associate Roxana Burciaga in Mexico City; partner Andrew Derman in Dallas; and partner Luis Gomar in Houston