The Strategist

Mexican Pemex will develop Zama field with privately owned Talos Energy

07/09/2020 - 03:21

The Mexican Ministry of Energy greenlighted creation of the first public-private partnership in the history of the country to develop an oil field, the right to which was initially claimed by a private consortium.

Tony Hisgett
Tony Hisgett
"The Ministry of Energy instructed Pemex and Talos Energy Offshore to merge the border section at the Zama field. For the first time in the country's history, the state and private companies will jointly develop the oil section," the ministry said on Twitter.

Earlier media reported, citing industry sources, that the Mexican oil and gas corporation Pemex was seeking to gain control of the Zama oil deposits that an international consortium led by the American Talos Energy discovered on the border with the Pemex site.

According to international auditors, Talos could claim 60% of the total oil reserves that Pemex also later discovered on its site. The Mexican side stated that it does not agree with such a distribution.

The Mexican government has abolished the rules for distributing oil plots established by the past president through open auctions, which caused criticism from free market supporters and concerns over the revision of auction results among industry players. President Lopez Obrador has repeatedly stated that none of the field development contracts will be reviewed.

Pemex, the state-owned oil and gas group, has stepped up drilling in Mexico due to the depletion of reserves under development.

Support for the oil and gas industry and the state-owned company Petroleros Mexicanos (Pemex) has been declared one of the priorities in the financial policy of the current government.