Opportunity for Pemex and Talos to reach an agreement for Zama

Opportunity for Pemex and Talos to reach an agreement for Zama

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Opportunity for Pemex and Talos to reach an agreement for Zama

Yeshua Ordaz

Mexico City / 07.15.2021 12:33:26

Although the Ministry of Energy (Sener), determined that the operator of the discovery Zama It will be Petróleos Mexicanos (Pemex), a unification resolution has not yet been issued, which is what follows in the guidelines, which opens a ‘window’ for Talos Energy and the state company to reach an agreement, explained the former CNH commissioner , Sergio Pimentel.

The lawyer explained in a legal talk about Zama, unification agreements are common in the industry and they should be seen as a necessary interrelation and cooperation between the parties. He added that the worst thing that can be done is to think that it is a struggle of forces and see who is going to get the field.

“The deposit is clear in both parties, in the Talos contract and the Pemex assignment. Nobody can take that away from them. it is about reaching a unification agreement. No one has taken anything from Talos and no one could take it from him. “

Sergio Pimentel added that what is pending and is not a minor issue; define what percentage is up to Talos and what percentage is up to Pemex, and that it must operate under the principles of legality, efficiency, transparency and the highest hydrocarbon recovery factor in the long term under economically profitable conditions.

The former commissioner added that it will be necessary to clarify how Sener decided that Pemex had the technical and financial capacities to operate Zama, and if the criteria of transparency, competitiveness, efficiency, legality and best practices in the industry.

“That interest conflict could be lessened if the reasons for why Pemex was given the operation of this field; technical and financial reasons, beyond simply saying that Pemex would operate it in the short term. ”

Pimentel added that the two companies have the capacity, but it must be operated by whoever is in the best position to grant greater profitability from this project, since the majority partner is the nation.

Added that Talos drilled the discovery well and two more to delimit the field. On the other hand Pemex had to drill a well; Asab-1EXP, what it did not perform and what would help provide certainty about the delimitation of the shared reservoir.

“Talos has already invested more than 300 million dollars (…) and I do not know if he has the incentive to go to fight in an international arbitration court. I think that there is a window yet to reach a settlement that benefits everyone “.