Mexico to offer farm-out on deep water field in Gulf

MEXICO CITY — Mexico's state-owned oil company says it will offer a farm-out arrangement to private firms to join in the exploration of a deep-water field in the Gulf of Mexico.

It would be the first time that Petroleos Mexicanos has formed an association with a private firm for deep-water drilling.

The Trion field is located in the Perdido belt just 25 miles (40 kilometers) south of the US maritime border.

The company known as Pemex said yesterday the offer will be put up for bid on Dec. 5.

Officials estimate it will take $11 billion in investments to develop the field in waters about 8,200 feet (2,500 meters) deep.

Farm-outs are agreements where service providers take an interest in field, usually part of the oil and gas production, rather than payment.