Page 6 - LatAmOil Week 31 2022
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                                      Zama lies within a shallow-water section of the southern Gulf of Mexico (Image: Talos Energy)

       Pemex offers to invest heavily in




       Zama if Talos accepts its terms






                         MEXICO’S national oil company (NOC) Pemex   Energy (UK), agree with Pemex that the time
                         has said it is prepared to invest heavily in the   has come to move forward, leaving Talos as the
                         development of Zama, a large oilfield offshore   only holdout, Romero added.
                         Tabasco State, provided that Talos Energy, the   “The only company that still doesn’t want to
                         US-based firm that first discovered it, accepts   accept that they cannot be operators because
                         the Mexican government’s decision to transfer   they have neither the size nor the percentage is
                         operatorship.                        them. It’s Talos,” he remarked.
                           Mexico’s Energy Secretariat (SENER) for-  Pemex definitely has the resources needed to
                         mally merged Block 7, the licence area that   cover the cost of developing the massive unitised
                         includes the Zama field, with Uchukil 0152, an   field, Romero added. The state-owned company
                         adjacent block assigned to Pemex, earlier this   is ready to do “whatever it takes” and invest bil-
                         year. It also named Pemex as the operator of the   lions of dollars to bring Zama on stream, he
                         unitised sites at the same time, asserting that the   declared.
                         Asab, Chamak and Naquita fields at Uchukil   “The president said that if Talos accepts, the
                         0152 were part of a single reservoir that lay   Mexican government and Pemex will proceed,”
                         mostly within the block assigned to the NOC.  he told Reuters. The NOC expects to spend
                           Since then, SENER and Pemex have been   “very little” on the project in 2022, but if the par-
                         trying to finalise an agreement with Talos on   ties are able to reach the FID stage before the end
                         the transfer. Mexican President Andres Manuel   of the year, spending will be higher in 2024, he
                         Lopez Obrador said on June 3 that his govern-  said. Lopez Obrador made a firm commitment
                         ment was on track to sign a deal soon, but as   to this effect during meetings between US and
                         of press time, the two sides had yet to come to   Mexican energy officials in May and June of this
                         terms.                               year, he noted.
                           Last week, Pemex’s CEO Octavio Romero   Talos originally discovered Zama at Block
                         Oropeza told Reuters in an interview that while   7 in 2017. At the time, it estimated the field’s
                         Talos was “still a bit reluctant” to wrap things up,   recoverable reserves at around 700mn barrels.
                         officials in Mexico City remained hopeful for a   The find was the largest made in Mexico in
                         quick resolution and a final investment decision   decades, and it caught the attention of Pemex –
                         (FID). “We hope they’ll finally accept and that   and of Lopez Obrador, who was eager to protect
                         we can get the project started,” he told the news   the interests of the state-owned company. The
                         agency.                              presidential administration ordered the par-
                           He went on to say that Pemex was the logi-  ties to merge their projects in July 2021, despite
                         cal choice to act as operator of the unitised field   Talos’ protests and complaints.
                         because it had the right experience to lead work   As a result of that unitisation, the US com-
                         at a licence area of that size and because most   pany has gone from having a 35% stake in and
                         of the reservoir lay within the Uchukil 0152   operatorship of Block 7 to having a 17.35% stake
                         block. Both of the other shareholders in the pro-  in and a non-operating interest in the merged
                         ject, Wintershall Dea (Germany) and Harbour   asset. ™



       P6                                       www. NEWSBASE .com                         Week 31   03•August•2022
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