Mexican ministry to decide on Zama field unitisation
Houston-based Talos Energy has announced that the unitisation process of the giant Zama oil field, located in Mexican waters, will enter its next phase, as established in Mexican regulation.
Discovered in 2017 by the Talos-led consortium, Zama is a shared reservoir which extends from Block 7 to neighbouring Pemex AE-0152-Uchukil Asignación in the Cuencas del Sureste, in the Bay of Campeche in Mexico.
According to Talos Energy’s statement on the 26th March, the Mexican Ministry of Energy (SENER) is now required to propose finalised terms of a Unitisation and Unit Operating Agreement (UUOA) based on international best practices and considering inputs from the parties.
As explained by Talos, Pemex and the Block 7 consortium, comprised of Talos and partners Premier Oil and Wintershall Dea, did not propose a UUOA to SENER within the initial timeframe established by the unitization guidelines, which ended on 25 March 2021.
President and Chief Executive Officer, Timothy Duncan, commented: “Since the presentation of the original key terms for the UUOA, significant progress in reaching a common understanding has been largely achieved. We appreciate the increased momentum and commitment from Pemex towards achieving a joint resolution”.
To remind in July 2020, the Mexican ministry instructed Pemex and Talos to come up with a unification agreement to develop the Zama reservoir together in a way which would maximise its value.
The two companies were then given 120 days to resolve the issue and deliver the UUOA to the ministry for approval.
It was also said that, if the two companies do not come to an agreement, the energy ministry would decide which company would run the Zama field operations.
Source: Offshore Energy Today