Chevron buys 40% slice in 3 Shell deep-water blocks in Mexico

MEXICO CITY (Reuters)-American Chevron said on Friday that it signed an agreement with a Shell unit to buy a slice of 40% in three deep-water blocks in the Gulf of Mexico that the Anglo-Dutch company had killed in auctions Promoted amid the country's energy reform. The agreement was approved earlier this week by the Petroleum regulatory Agency of Mexico, the National hydrocarbon Commission. " This agreement further strengthens the company's ' upstream ' portfolio in Mexico and advances its growth strategy in deepwater exploration, "Chevron spokesman Ray Fohr said in A statement. The company did not disclose the value of the business. Chevron's Mexico unit is the main operator of two deep-water block exploration and development consortia in the Gulf of Mexico: one in block 3 of the Lost Basin, another in block 22 of the Salina Basin. The Shell, in turn , killed nine of the 19 "offshore" oil and gas blocks auctioned last year, in the most competitive bidding rounds that resulted from Mexico's historic energy opening (2013-2014). Shell obtained approval from the Mexican regulator earlier this year to invest 2.4 billion in a drilling plan that could include up to 13 deep water wells in Mexico over the next four years.