Pemex takes over operation of Mexico’s largest private oilfield from Talos

Mexico’s Secretary of Energy designated Petróleos Mexicanos as operator of the country’s largest oil discovery by private companies, making it the latest sign of the government’s nationalist approach to the energy industry.

Zama’s field, discovered in 2017 by a private consortium led by Talos Energy Inc., will be operated by the public producer, according to a person familiar with the situation who asked not to be identified because the decision was not made public. The resolution ends a long-standing dispute between Pemex, as the crown corporation is known, and Houston-based Talos over the operation of the field, which holds up to 1 billion barrels of oil equivalent.

Spokesperson for the Ministry of Energy of Mexico and Pemex did not immediately respond to requests for comment. Timothy Duncan, CEO of Talos, did not immediately respond to a call for comment.

The Reforma newspaper previously reported that Talos and Pemex were informed by Mexican authorities through a letter. the public company had the technical capacity and the conditions to exploit the deposit. The estate, shared by the two companies, is located in the Bay of Campeche.

CONTINUE READING