Bid won for stake in Trion venture

BHP BILLITON had won a bid to acquire a 60 percent stake in a joint venture to develop the Trion field in the deep-water Gulf of Mexico, the company said yesterday. The mining group said Mexico’s state-owned oil company Pemex would retain a 40 percent interest in the blocks. BHP’s bid for Trion includes an upfront cash payment of $62.4 million (R851m) and a commitment to a minimum work programme, estimated to be worth up to $320m. Should BHP and Pemex agree to progress the project beyond the minimum work programme, BHP would be required to invest $1.2 billion. Steve Pastor, BHP’s president for petroleum operations, said: “This opportunity aligns with our strategy of owning and operating tier-1 assets and provides an opportunity for BHP Billiton to leverage its industry leading deep-water drilling, development and operational expertise to create value in Mexico”. BHP shares fell 3.81 percent to R226 yesterday. – ANA

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