BHP wins Mexican bid

PERTH (miningweekly.com) – Mining major BHP Billiton has won a bid to acquire a 60% participating interest in the Trion blocks, offshore Mexico.

The remaining 40% interest in the asset will be held by Pemex Exploration and Production Mexico.

BHP’s bid for the Trion assets includes an upfront cash payment of $62.4-million and a commitment to a minimum works programme of up to $320-million. Should BHP and Pemex agree to progress the project beyond the minimum work programme, BHP will be required to invest the remainder of the $570-million minimum work contribution and a $624-million cash contribution, which includes the $62.4-million upfront cash payment.

BHP petroleum president of operations, Steve Pastor, said on Tuesday that the company saw attractive potential in Trion and the Perdido trend, and was pleased to have the opportunity to further appraise, and potentially develop, the frontier area.

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

Pemex has previously estimated that the Trion assets hold a gross recoverable resource of 485-million barrels of oil equivalent.

Subject to the satisfaction of conditions, including government approvals, relevant agreements between the companies will be completed within 90 days.