Pemex would consider letting private group operate Zama oil field, CEO says
22/03/2021 16:55
By Ana Isabel Martinez
VILLAHERMOSA, Mexico, March 22 (Reuters) - Petroleos
Mexicanos (Pemex) would consider having a consortium headed by
U.S. company Talos Energy operate a shared oil field in southern
Mexico, the chief executive officer of the Mexican state oil
firm said.
Discovered in 2017 in shallow waters of the Gulf of Mexico
off Tabasco state, the Zama oil field is believed to contain
nearly 700 million barrels of oil, making it the biggest new
find in Mexico by a private company in decades.
Identified in an area operated by the Talos consortium, the
discovery also extends into Pemex's neighboring block.
In 2015, The Talos group won the right to explore the block
in tenders held under former president Enrique Pena Nieto's
opening of the energy market to private capital.
Zama has become a litmus test of private sector confidence
of President Andres Manuel Lopez Obrador's government, which
quickly canceled further oil tenders.
Pemex CEO Octavio Romero said although his company had the
wherewithal to operate the field, he was not set against the
private consortium doing so, provided it met certain conditions.
"It's not a case of 'I want (to be the operator) because I'm
the biggest, or I'm the best-looking,' it's because it suits
them and it suits us," Romero said in an interview in Tabasco.
"We're talking about it, we're analyzing it technically."
"It may be at some point the consortium meets all the
criteria that matter to Pemex to develop this field; if all the
conditions are acceptable and beneficial for Pemex, we could
analyze it," he added.
Made just ahead of a key deadline for agreement between the
two sides, Romero's comments hinted at a shift in posture: just
over a year ago, he said Pemex wanted to operate Zama, arguing
it had most of the deposit and could develop it faster.
Talos, whose consortium also includes Germany's Wintershall
Dea WINT.UL and Britain's Premier Oil PMO.L , did not
immediately reply to a request for comment.
Urging them to come to terms, the energy ministry extended
until March 25 a deadline for the two sides to reach an initial
unitization agreement to set rules on shared operations.
However, since Lopez Obrador took office in December 2018,
his leftist government has halted that liberalization of the
market and vowed to strengthen Pemex against private
competition. urn:newsml:reuters.com:*:nL1N29Y0TI urn:newsml:reuters.com:*:nL1N29Y0OK
Both Pemex and Talos have argued they can best develop Zama
and have most of the oil in their part of the field.
Asked whether due to a lack of funds Pemex would be willing
to grant the consortium the right to operate Zama, Romero said
that while economic limitations did exist, they were no reason
to sign deals contrary to his company's interests.
"We can't accept being told: 'since you don't have the
money, you have to accept my conditions,'" he said.
"We are Mexico," he added, noting that Pemex is developing
infrastructure around Zama in an attempt to create "synergies"
with other discoveries that would permit cost savings.
Romero also said he would rather reach agreement than have
to resolve the matter via international arbitration.
"We have all the credentials to be the operator, we believe
we have the highest percentage (of the deposit) but we're not
closing the door either. If they're prepared to accept what
we're proposing, Pemex would consider it," he said.
Romero did not provide further details.
Lopez Obrador has gradually rolled back Pena Nieto's energy
reform for the benefit of Pemex and state electricity company
the Comision Federal de Electricidad (CFE), which he said his
predecessors wanted to carve up.
(Reporting by Ana Isabel Martinez; Editing by David Gregorio)
((Ana.Martinez@thomsonreuters.com;))