BHP Billiton Buys 60% of Two Blocks Offshore Mexico for Up to $382.4 Million
December 05 2016 - 12:16PM
Dow Jones News
LONDON--BHP Billiton PLC (BLT.LN) said Monday it is buying 60%
of blocks AE-0092 and AE-0093 containing the Trion discovery
located in the deep-water Gulf of Mexico, offshore Mexico, for up
to $382.4 million.
The global resources company will pay first $62.4 million in
cash and will commit to a minimum work program estimated to be
about $320 million, it said.
But if both companies agree to go beyond the minimum work
program, BHP Billiton will need to pay the remainder of the $570
million minimum work contribution, which includes the $320 million,
plus a $624 million cash contribution, which includes the $62.4
million, the company said.
The gross recoverable resource from the blocks is about 485
million barrels of oil equivalent.
PEMEX Exploration & Production Mexico will keep the 40%
interest in the blocks.
Write to Olga Cotaga at olga.cotaga@wsj.com, Twitter
@OlgaCotaga
(END) Dow Jones Newswires
December 05, 2016 12:01 ET (17:01 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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