Upcoming Joint Venture Auction in Trion Field

Mexican oil regulators (CNH) finalized new business-friendly changes to the joint venture agreement for the upcoming auction on December 5th. Pemex will enter into exploration and production joint venture for the first time in the development of Trion field in the Gulf of Mexico just south of Mexico maritime border with the U.S. Final changes eliminated Pemex’s power to unilaterally remove the oil company selected to operate the project, and eliminated a cash bond in the joint operating agreement, and gives the operator the “decisive vote” in any work program disagreements with Pemex. Previously CNH had reduced Pemex’s stake in the project from 45% to 40%. Pemex estimates total investment of $11 billion, and several U.S. companies are expected to bid for the contract.