Chevron, INPEX Corporation and Petróleos Mexicanos signed the contract for the Deep-water exploration and extraction of hydrocarbons in the corresponding licensing modality for block 3 North of the Plegado Perdido Belt in the Gulf of Mexico.

This block was awarded to the consortium formed by these three corporations, through the competitive process that is a part of the fourth bidding for Round 1, which was convened by the National Hydrocarbons Commission (CNH). The proposal which won the consortium the award, included an additional royalty of 7 per cent and an investment factor that only covers the exploration studies to define posible commercial accumulations of hydrocarbons.

At the event, José Antonio González Anaya, CEO of Pemex, pointed out that the state productive company is taking advantage of the tools of the Energy Reform, applying the best international practices to boost the development of deep water fields, for which the necessary technology is very specialized and it is necessary to share the high risks that it entails.

He assured that Pemex is a reliable and highly competitive partner. In each association, he said, he will take advantage of the technical advantages of the alliance to strengthen the company’s operation and capabilities that will allow it to increase its production platform in a profitable, safe and sustainable manner.

During his intervention, Clay Neff, Chevron’s incoming president for Latin America and Africa, stated that the signature of this contract is an important milestone in the collaboration that Pemex and Chevron have kept up over many years, and it is also evidence that Mexico’s future is also the future for Chevron.

On his part, Shuhei Miyamoto, the INPEX VP for the Americas and Africa, stated that his company has had a presence in Mexico for almost 15 years, wherefore this contract will be the key to strengthen the bond between Mexico and Japan, benefitting both countries.

Block 3 North is located off the coast of the state of Tamaulipas, approximately 100 kilometers from the shoreline, in the deep waters of the Gulf of Mexico, with a waterway of 500 to 1,800 meters, to the southwest of the Trion block. Spanning an area of 1,687 km2, it has the potential of containing hydrocarbons in formations that may be equivalent to the Trion deposits.

The potential anticipated by Pemex in this block complements its exploratory portfolio, providing options for the achievement of the goals for incorporating reserves. This is a project that has considered an investment of approximately 100 million pesos during the initial exploration period (the first four years), to define its oil potential.

The relationship that Pemex maintains with Chevron and INPEX in Round 1.4 marks the beginning of further joint participations in future bidding rounds, as well as to seek an active collaboration in international hydrocarbons exploration and production opportunities.

This is a historical alliance for Pemex, as it represents the first block awarded to the company as a part of an association after the approval of the Energy Reform.

For Chevron and INPEX this association marks their incursion into the Mexican portion of the Gulf of Mexico and evidences the trust placed on the country. For Pemex, this is its first alliance since the Energy Reform, which will allow for a joint deep-water exploration where it has proven its knowledgeability, as shown by the discoveries in the Gulf of Mexico.

Chevron Energía de México is a subsidiary of Chevron Corporation, a leading US oil company in global deep-water operations, with a production of around 3 million barrels of crude oil equivalent per day, a company with which Pemex Exploración y Producción has had a relationship for over 20 years.

INPEX Corporation is the largest oil and gas exploration and production company in Japan. The company is currently engaged in approximately 70 projects spread across more than 20 countries, including the Ichthys LNG Project in Australia, as the Operator.

The event, held at the Pemex Tower in Mexico City, was attended by the Secretary of Energy, Pedro Joaquín Coldwell, the president of the CNH, Juan Carlos Zepeda, and the general secretary of the STPRM, Sen. Carlos Romero Deschamps. The work teams of each of the companies were also present, who held a work meeting after the signing event.

About Pemex

Pemex, Mexico's state oil company, is engaged in the exploration, production, transportation, refining, storage and sale of hydrocarbons and derivatives. Its products include petrochemicals, natural gas, liquid gas, sulphur, gasoline, kerosene and diesel. Pemex operates 344 production fields, 6,382 production wells, 225 off-shore platforms, 6 refineries, 8 petrochemical complexes, 7,896 km of gas pipeline, 4,548 km of oil pipeline, and 19 LPG distribution terminals.

For the energy sector this is good news because Trion has possible reserves and no oly prospective resources like the rest of the blocks in round 1.4.

This announcement is also good news for the country because the investments that will flow into Mexico for the exploration and exploitation of this fields and the rest of the blocks of round 1.4 will enable the development of infrastructure and will foster employment in the region.

About Chevron

Chevron (NYSE:CVX) is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power and produces geothermal energy; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif.

About INPEX

INPEX CORPORATION is Japan’s largest exploration and production (E&P) company, and a mid-tier E&P player just behind the world’s oil majors. INPEX is currently involved in approximately 70 projects across more than 20 countries, including the Ichthys LNG Project in Australia as Operator. Through sustainably growing its oil and gas development business, INPEX aims to become a top class international oil and gas E&P Company and continue providing a stable and efficient supply of energy to its customers.