Pemex and Petrobras partner for deep-water drilling in Mexico

Mexico’s state-owned oil company Pemex and Brazil’s Petrobras are collaborating on high-risk, high-reward deep-water drilling projects in the Gulf of Mexico. The partnership aims to tap into Jurassic formations located deep beneath the seabed in Campeche Bay. These source rock formations are significantly deeper and older than those currently being produced in the U.S. Gulf.

While the exploration carries substantial risk, analysts suggest Pemex’s continued interest in the area stems from potential hydrocarbon-bearing findings during a 2018 drilling campaign. Although that specific well was declared unproductive, experts believe the lack of abandonment suggests geological potential worth further testing.

Due to its heavy debt, Pemex is leveraging Petrobras’s technical expertise. Petrobras brings two decades of experience drilling in Brazil’s pre-salt layers, which have proven to be highly prolific offshore oil plays.