Equinor To Drop Mexican Offshore Leases

The move is part of a larger reset, cutting the operator’s international exposure

Gulf of Mexico
Gulf of Mexico

Equinor will exit two Mexican deepwater blocks as part its upstream investment strategy to focus on assets offering rapid and strong returns. The two blocks located in the Salina Sureste basin were acquired in Mexico’s 1.4 bid round in an equal equity split with BP and TotalEnergies.

Block 3, where Equinor holds a 33% operating interest, has water depths ranging from 900 to 2500 m. Block 1, where BP is the operator, has water depths ranging from 200 to 3100 m.

Exploration commitments include a single well on each block, not yet drilled.

The announcement to exit Mexico was made by Executive Vice President for E&P International Al Cook during the company’s Capital Markets Day event held in June. The company also unveiled plans to leave Nicaragua and Australia, as part of its upstream investment plans.

Cook added that Equinor will only operate offshore assets moving forward and will no longer operate onshore, unconventional projects. The company will instead opt to partner with others on those projects.

Equinor will also look to offload its exploration assets in the Austin Chalk play in the US and Terra Nova in Canada, he said.