Offshore staff
HAMBURG, Germany – DEA Deutsche Erdoel has agreed to acquire Mexican E&P company Sierra Oil & Gas.
Pending approvals from Mexico’s National Hydrocarbons Commission (CNH) and the Federal Economic Competition Commission, the deal should close during the first half of 2019.
It will be the largest upstream mergers and acquisitions (M&A) transaction in the country since the liberalization of the country’s petroleum sector in 2013, DEA claimed.
Sierra has a 40% interest in block 7 in the Sureste basin of the Gulf of Mexico, which contains a large part of the shallow-waterZama oil discovery. Operator Talos Energy started appraisal drilling earlier this week.
The field, thought to hold reserves in the range of 400-800 MMboe, will likely enter production by 2022/23.
In addition, Sierra has interests in five other exploration blocks in the basin – its acreage covers a total area of around 9,400 sq km (3,629 sq mi).
DEA, which will soon merge with Wintershall, operates Mexico’s onshore Ogarrio oil field in partnership with Pemex, and has stakes in exploration blocks in the Tampico Misantla and Sureste basins.
CEO Maria Moraeus Hanssen said the acquisition would “allow DEA to achieve materiality in the highly strategic and competitive Mexican upstream market and provide us with a high-quality exploration and appraisal portfolio in one of the world’s most sought-after offshore basins, as well as a strong team.
“The transaction also underlines our confidence in the future of Mexico’s energy industry. Upon completion of theplanned merger of DEA and Wintershall, this acquisition will further strengthen Mexico as a core region for the combined company, which will become one of the major players in Mexico.”
12/05/2018
