No deal has been reached on the future of a lucrative shared oil deposit as a deadline expired on March 25, but Mexican state-run Pemex and Talos Energy will keep talking, three sources with direct knowledge of the matter told Reuters.
How to develop the nearly 700 million-barrel offshore Zama discovery, which was made by the Talos-led consortium in 2017, has been the subject of sensitive talks during a three-month extension provided by the energy ministry late last year.
But negotiators wrangling over operational details including who will run the project, one of the largest private oil finds in Mexico in decades, did not reach a deal as the deadline passed, the sources said.
Pemex’s media office and the energy ministry did not immediately respond to a request for comment.
A Talos representative declined to comment.
Earlier this week, Reuters reported that Pemex could consider an agreement under which Talos is the project operator if the U.S.-based company accepted certain conditions.
Two of the sources said an announcement will be made March 26, but it was unclear whether or not a formal extension to the talks would be given by the energy ministry.
The other members of the Talos-led consortium are Germany’s Wintershall Dea and Britain’s Premier Oil.
Recommended Reading
TC Energy’s Keystone Back Online After Temporary Service Halt
2024-03-10 - As Canada’s pipeline network runs full, producers are anxious for the Trans Mountain Expansion to come online.
Enbridge Fortifies Dominant Role in Corpus Christi Crude Transport
2024-03-20 - Colin Gruending, Enbridge executive vice president and president for liquids pipelines told Hart Energy the company’s holdings in South Texas are akin to a “catcher’s mitt” for Permian and Haynesville production.
Early Startup of Trans Mountain Pipeline Expansion Surprises Analysts
2024-04-04 - Analysts had expected the Trans Mountain Pipeline expansion to commence operations in June but the company said the system will begin shipping crude on May 1.
Kinder Morgan Sees Need for Another Permian NatGas Pipeline
2024-04-18 - Negative prices, tight capacity and upcoming demand are driving natural gas leaders at Kinder Morgan to think about more takeaway capacity.
Pembina Pipeline Enters Ethane-Supply Agreement, Slow Walks LNG Project
2024-02-26 - Canadian midstream company Pembina Pipeline also said it would hold off on new LNG terminal decision in a fourth quarter earnings call.