The Trion field has been approved as the first subcontracted site to be offered by Pemex and the Comision Nacional de Hidrocarburos for the Gulf of Mexico's current bidding round, according to a GlobalData report.  

Entitled ‘Mexico Trion Project Panorama – Oil and Gas Upstream Analysis Report’, the report states that Trion is a significant asset owing to its abundant reserves. Pemex intends to achieve 420 million barrels of oil and 325 billion cubic feet (bcf) of gas from the field’s development. The Mexican operator plans to use the field’s infrastructure for future developments for tie-backs.

Expected to be farmed-out by the end of this year, the field is the biggest to be subcontracted in the deepwater Gulf of Mexico. Pemex reports suggest that the field’s reservoirs are of higher quality compared with the Perdido area in the US. The total cost of development of Trion is estimated to be $11bn due to its remote location.

"Pemex intends to achieve 420 million barrels of oil and 325 billion cubic feet of gas from the field’s development."

The offering of an important asset such as Trion is expected to generate potential interest in the impending bidding round, according to GlobalData.

The field will be developed and operated in partnership with Pemex to collaborate with a company with prior experience in ultra-deepwater developments and willing to invest in the field. A final investment decision will be taken jointly by the partners with an option to modify the development plan based on further explorations.

Meanwhile, the report reveals that the Trion development has a negative net present value based on a new development plan and using a licence scheme with an additional royalty of 10%. The project also assumes a break-even oil price of $59 a barrel and an internal rate of return of 6.5%.

Productivity from the field stands to gain from the nearby Exploratus field, which is also planned for a farm-out in the future. The prospect of capital and cost optimisation between the two fields increases the possibility of a joint development.