Mexican national oil company Pemex and Hokchi Energy have begun the first stage of unitization negotiations over a possible offshore shared reservoir in the southern Gulf of Mexico, Mexico’s energy ministry told Reuters Sept. 2.
The ministry said Pemex, formally known as Petroleos Mexicanos, told it in May that an exploratory well it drilled in a block where it holds development rights “infers” the possibility of a shared oil reservoir with an adjacent shallow water area belonging to Hokchi Energy.
The companies have begun talks over a confidentiality agreement that will allow both sides to share technical data, the ministry said.
Hokchi is a unit of Argentina’s Pan American Energy, which is partially owned by British oil major BP.
None of the companies involved—Pemex, Hokchi Energy, Pan American Energy or BP—
The ministry’s announcement confirms local media accounts earlier on Sept. 2 that the two sides may have a shared reservoir, which would ultimately need to be confirmed in a technical analysis by Mexico’s National Hydrocarbons Commission, or CNH, the sector regulator.
If confirmed, it would mark the second such shared oil reservoir in Mexico, after the CNH determined earlier this year that the so-called Zama reservoir discovered by U.S.-based Talos Energy extends into Pemex's neighboring block.
Both Pemex and Talos claim a majority of the nearly 700 million barrel Zama discovery even though Pemex has yet to drill any wells in its adjacent block.
The energy ministry has given both sides until early next year to come to an initial agreement over a preliminary split of the reservoir and to decide which company operate of the potentially lucrative development.
Recommended Reading
AltaGas to Acquire Tidewater Midstream Assets for $480MM
2023-08-31 - AltaGas said it will acquire Tidewater’s Pipestone Natural Gas Processing Plant Phase 1 and II expansion projects; an adjacent natural gas storage facility; a truck-in/truck-out terminal; and associated gathering pipeline systems.
Energy Transfer to Acquire Crestwood Equity Partners for $7.1 Billion
2023-08-16 - The all-equity transaction, which includes the assumption of $3 billion of Crestwood debt, adds infrastructure in the Williston and Delaware basins and also provides Energy Transfer with an entry into the Powder River Basin.
Kimbell Royalty Partners’ Largest Deal Yet Targets Permian, Midcontinent
2023-08-03 - Kimbell Royalty Partners acquisition adds acreage in the Delaware and Midland basins, which remains the company’s leading basin for production, active rig count, DUCs, permits and undrilled inventory.
Crescent Point Sells North Dakota Assets to Private E&P
2023-08-24 - Crescent Point Energy is optimizing its portfolio as it looks to pay down debt associated with acquisitions in the Kaybob Duvernay and Alberta Montney.
Permian Resources Buys Earthstone Energy for $4.5 Billion
2023-08-21 - The deal, which comes after extensive M&A by Earthstone, will increase Permian Resources’ leasehold to more than 400,000 net acres and its production to 300,000 boe/d.