March 14, 2017
Dallas - Thompson & Knight LLP congratulates clients BHP Billiton Ltd., CNOOC Ltd., and PETRONAS for the execution of five deepwater license agreements with the National Hydrocarbons Commission of Mexico.
On March 3, BHP Billiton Ltd. signed the Trion Block license agreement in association with PEMEX – the first-ever farm-out with PEMEX. On March 10, PETRONAS signed two license agreements, one in partnership with Sierra Offshore Exploration, and another in partnership with Murphy Sur, Ophir Mexico, and Sierra Offshore Exploration. CNOOC Ltd. also signed two license agreements on March 10, concluding the final phase of Mexico’s first oil and gas bid round since the country commenced energy reform in 2013. Round 1.4 awarded eight license agreements in total, and the PEMEX farm-out process selected PEMEX’s partner for the development of the Trion Block.
“The execution of the deepwater license agreements represents the conclusion of a historic and successful first round of tenders for Mexico, and we are honored to continue assisting our clients in navigating the challenges and opportunities presented by Mexico’s most ambitious energy reform since the oil industry nationalized in 1938,” said Luis F. Gomar, Thompson & Knight’s Mexico City Office Leader and a Partner in the Firm’s International Energy Practice Group.
In the first partnership in history with PEMEX to produce hydrocarbons in Mexico, BHP Billiton Ltd. secured operatorship and 60 percent interest of the areas covering the Trion Block, located south of Mexico’s maritime border with the United States. CNOOC Ltd. will operate Block 1 and Block 4 in the Perdido Fold Belt. PETRONAS will operate Block 4 in partnership with Sierra Offshore Exploration, and partner in Block 5 with operator Murphy Sur, Ophir Mexico, and Sierra Offshore Exploration. Both Block 4 and Block 5 are located in the Salina Basin.
The Thompson & Knight cross-border team who assisted BHP Billiton Ltd., CNOOC Ltd., and PETRONAS included Gabriel Ruiz, Andrew B. Derman, Luis F. Gomar, Luis Moreno, María Luisa Licón, Roxana Burciaga, and Juan Riestra.
For more information about Mexico Energy Reform, visit https://www.tklaw.com/energy-mexico-practices/.