Delegates of Mexico, the U.S. and Cuba met on July 6 to discuss the limits of the Western Polygon, an area in the waters of the Gulf of Mexico (GoM) that has oil and gas deposits but no clear boundaries, two sources close to the discussion said.
Talks about who owns what in the "Doughnut Hole" were spurred after Cuba and the U.S. announced they would restore diplomatic ties in late 2014.
International law gives countries the right to any resources found in the sea within 200 miles of their territory. But when areas overlap, as they do in the case of this resource-rich Doughnut Hole, countries have to come up with an agreement.
The sources said talks would be of a technical character and would continue over several days this week.
"The conversations are looking for agreement to demarcate the borders and see what will happen with this area," one source said.
Mexico already has an agreement with the U.S., but not with Cuba.
After a landmark energy reform put in place in 2014, Mexico is looking to attract more private investment to exploit possible deepwater oil and gas reserves in the GoM.
Recommended Reading
Babcock & Wilcox to Convert Coal Plant to NatGas
2024-03-18 - B&W will convert the plant’s two coal-fired boilers to natural gas by designing and installing burners, air systems, fans and other equipment.
Majors Aim to Cycle-proof Oil by Chasing $30 Breakevens
2024-02-14 - Majors are shifting oilfields with favorable break-even points following deeper and more frequent boom cycles in the past decade and also reflects executives' belief that current high prices may not last.
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.
Paisie: Crude Prices Rising Faster Than Expected
2024-04-19 - Supply cuts by OPEC+, tensions in Ukraine and Gaza drive the increases.
API Gulf Coast Head Touts Global Emissions Benefits of US LNG
2024-04-01 - The U.S. and Louisiana have the ability to change global emissions through the export of LNG, although new applications have been frozen by the Biden administration.