Petroleos Mexicanos and a consortium led by Talos Energy have finalized a field development plan for the giant oil field Zama after years of stalled negotiations.
(Bloomberg) — Petroleos Mexicanos and a consortium led by Talos Energy have finalized a field development plan for the giant oil field Zama after years of stalled negotiations.
The companies submitted the plan to Mexico’s oil regulator for approval, Pemex said in a statement Thursday. The oil field was first discovered by Talos and its partners in 2017 but Pemex was named operator of Zama in 2021 by the Energy Ministry after it was decided that a reservoir crossed into one belonging to Pemex and Pemex had the majority of the area.Â
Under the presidency of Andres Manuel Lopez Obrador, Mexico has sought to give Pemex a bigger share of the nation’s oil territory. The president also reversed energy reforms made in 2013 and 2014 by his predecessor that had enabled the Talos-led consortium to make the discovery in the first place.
While Talos Energy and its partners — Wintershall DEA and Harbour Energy — at one point threatened international arbitration over the decision, Talos has said that it would accept a plan that would enable it to share in the development decisions with Pemex.Â
Read More: Mexico Oilfield Dispute Is an Industry Warning, Talos Chief Says
The plan includes drilling 46 wells with two offshore platforms, and the oil and gas will be sent to a new onshore facility at the Dos Bocas port, Pemex said in the statement. Zama is expected to reach 180,000 barrels a day of output, about 10% of Mexico’s total oil production, Pemex said.
The approval of the field development plan is the last step before the companies involved in the project finalize their investments. In August, Talos chief executive officer Tim Duncan told Bloomberg News that if the parties couldn’t agree, Talos would likely seek compensation under the US, Mexico, Canada free trade agreement USMCA.Â
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