Woodside hits Mexico

WOODSIDE Petroleum Limited has paid US$25.6 million for entry into hydrocarbon prospective, deep water exploration acreage in the Gulf of Mexico.

Representing one of its first major overseas acquisitions, the company’s wholly-owned subsidiary, Woodside Energy (USA) Inc. reached agreement with the Marathon Oil Company – part of the USX-Marathon Group which is a unit of the USX Corporation in Pittsburgh – for the acquisition of interests in a number of deep water exploration acreage blocks in the Gulf.

Woodside spokesman Geoff Wedge-wood said the acquisition included a cash payment to Marathon and precommitted exploration expenditure by Woodside.

The acquisition provides Woodside with from 12.5 per cent to 33 per cent interests in forty-three deep water exploration blocks including a number of identified prospects and leads, with maturity ranging from prospects ready to drill to immature leads which require further technical evaluation.

Mr Wedgewood said the Gulf of Mexico was one of a small number of key geographic focus areas forming part of Woodside’s international exploration strategy.

“It offers significant growth potential in terms of undiscovered resources, attractive fiscal terms, little or no

political risk and easy access to infrastructure and domestic oil and gas markets – all of which facilitate the early commercialisation of resources,” he said.