Mexico authorizes first-ever unitization arrangement for Zama discovery

Offshore staff

MEXICO CITY – Pemex and Talos Energy, as operator of the consortium for block 7 in the Gulf of Mexico, have signed a pre-unitization agreement (PUA).

This concerns certain tracts within the Amoca-Yaxche-03 allocation (assigned to Pemex as part of Round 0) and the contiguous block 7 production-sharing contract (assigned to Talos, Sierra Oil and Gas and Premier Oil by the National Hydrocarbons Commission under the first tender of Round 1).

Both areas are in Mexico’s prolific offshore Southeast basin.

The PUA, approved by the Ministry of Energy, is also the country’s first such agreement: it runs for two years, and allows information to be shared concerning the shallow-waterZama oil discovery and its potential extension into Pemex’s neighboring block.

According to Talos, it also sets out a clear path for signing of a unit agreement and unit operating agreement if studies confirm a shared reservoir, which will ultimately determine the resulting participation of each party in any overall development that follows.

Both parties have agreed to establish a working group to maximize operational and informational efficiencies, define activities on each tract for optimizing the collection of data and reducing any potential hazards.

This will include legal and technical representatives from the member companies.

09/21/2018