BHP Billiton has executed a contract with PEMEX to work on the deepwater Trion discovery offshore Mexico.

Last December, BHP bid successfully for a 60% operating interest in blocks AE-0092 and AE-0093 and committed to participate in an appraisal campaign.

This will likely confirm Trion as one of the top 10 fields discovered in the Gulf of Mexico over the last decade.

The agreed to $320-million minimum work program comprises one appraisal well, one exploration well, and acquisition of additional seismic data.

Should BHP and PEMEX agree to progress the project further, BHP would have to commit to invest the remainder of the $570-million minimum contribution, which includes the minimum work program spend.

It would also carry PEMEX for an additional $561.6 million on future project costs, which is the remainder of the $624 million cash contribution submitted in the bid.

And should the project progress to full development and production, both parties would pay the Mexican government 4% on revenues, as committed in the bid.

Source: Offshore Mag -