Woodside and Pemex Sign MOU to Pursue Deepwater Exploration in Gulf of Mexico

## Woodside and Pemex Eye Deepwater Gulf of Mexico Opportunities Australian energy giant Woodside Energy and Mexico's state-owned petroleum company Petróleos Mexicanos (Pemex) have signed a non-binding memorandum of understanding (MOU) to explore potential deepwater oil and gas plays in the Gulf of Mexico, according to Offshore Energy. The agreement signals Woodside's continued ambition to expand its upstream portfolio in one of the world's most prolific deepwater basins, while offering Pemex — which has faced mounting financial pressures and declining production in recent years — access to a technically capable international partner with proven deepwater expertise. ### Strategic Significance The Gulf of Mexico's deepwater sector remains among the most prospective hydrocarbon frontiers globally, with established infrastructure and a mature regulatory environment on the US side of the basin. Mexico's deepwater acreage, however, has seen comparatively limited exploration activity, partly due to Pemex's constrained capital budgets and the complexities of operating in Mexican waters. For Woodside, the MOU represents a strategic opportunity to leverage its deepwater capabilities — honed through operations in the Browse and Carnarvon basins offshore Australia — in a new geography. The company has been actively seeking to diversify its asset base following its merger with BHP's petroleum business in 2022. For Pemex, partnering with an experienced international operator could help unlock reserves that the state company has struggled to develop independently, potentially supporting Mexico's broader energy security objectives. ### MOU Framework As a non-binding agreement, the MOU establishes a framework for the two companies to jointly assess exploration opportunities, share technical data, and evaluate the commercial viability of potential projects. Any binding commitments would be subject to further negotiation, regulatory approvals, and the outcomes of technical studies. The partnership reflects a broader trend of international energy companies seeking collaborative arrangements with national oil companies to access frontier deepwater acreage, sharing both the technical risk and capital requirements that characterise deepwater exploration programmes. Further details regarding specific blocks or timelines for exploration activities have not yet been disclosed by either party.