Pemex and Petrobras Sign Cooperation Deal for Deepwater Gulf of Mexico Drilling
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Mexico's Pemex and Brazil's Petrobras signed a memorandum of understanding in June to jointly assess and develop deepwater and ultra-deepwater opportunities in the Gulf of Mexico. The agreement covers technical cooperation and exchange of expertise, leveraging Petrobras' experience in complex offshore operations. The partnership targets high-risk Jurassic formations in Campeche Bay, where Pemex drilled an unproductive well in 2018.
Key Facts
- Pemex and Petrobras signed a memorandum of understanding in June for strategic and technical cooperation in exploration and production.
- The partnership will evaluate deepwater and ultra-deepwater opportunities, including assets in the Gulf of Mexico.
- Pemex drilled more than 7,800 meters below the sea floor in Campeche Bay in 2018, penetrating the salt layer, but the well was declared unproductive.
- Petrobras has two decades of experience drilling in the pre-salt layer offshore Brazil, which propelled Brazil into the top ten of world oil producers.
Partnership Details
In June, Pemex and Petrobras signed a memorandum of understanding for strategic and technical cooperation to assess, develop, and jointly execute projects, including opportunities in Exploration and Production. The companies will evaluate development opportunities in deepwater and ultra-deepwater areas, including assets located in the Gulf of Mexico. The partnership includes the exchange of technical knowledge, technologies, and best practices, leveraging Petrobras' recognized expertise in highly complex offshore operations.
Geological Targets and Risks
The exploration targets Jurassic formations deep under the Mexican Gulf seabed in Campeche Bay, which are miles deeper and eight times older than currently producing formations in the U.S. Gulf. In 2018, Pemex drilled more than 7,800 meters (25,600 feet) below the sea floor and penetrated the Campeche salt layer in an exploratory well that was declared unproductive. Pemex has not shared publicly any results of its 2018 drilling campaign offshore Campeche, but analysts suggest the company may have found something of great geological or hydrocarbon-bearing potential. Mark Rowan, a Colorado-based geologist specializing in deep Gulf of Mexico discoveries, said that what Pemex found did not scare them away, suggesting there was no absolute play-killer and possibly something that gave them real reason to keep testing.
Petrobras Expertise
Petrobras has two decades of experience drilling in the pre-salt layer offshore Brazil, where it has opened one of the most prolific offshore oil plays in the Santos and Campos Basins. The pre-salt discoveries in these basins have propelled Brazil into the top ten of the world's biggest oil producers in the past decade. Drilling into Jurassic source rocks offshore Mexico is a highly complex offshore operation with high execution risk, according to geologists and analysts.
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Pemex and Petrobras Sign Cooperation Deal for Deepwater Gulf of Mexico Drilling
