Pemex gets two new farm-out partners

MEXICO CITY, October 5, 2017 – Mexico’s National Hydrocarbons Commission (CNH) auctioned three Pemex farm-outs on Wednesday, securing partners for two onshore blocks.

DEA Deutsche Erdoel was awarded a partnership with Pemex in the Ogarrio field, offering a USD 213.9-million cash payment, a USD 190-million reimbursement to Pemex for previous work done and an additional 13% royalty. Spanning 156 square kilometres in Tabasco, Ogarrio is estimated to hold up to 54 million boe in 3P reserves.

Egyptian company Cheiron Holdings won operatorship of the 168-square-kilometre Cardenas-Mora field, with a total offer of USD 166 million and a 13% additional royalty. The field is located in Tabasco state and is said to contain 93 million boe of 3P reserves.

Pemex will retain 50% stakes in both Ogarrio and Cardenas-Mora, but the winners of yesterday’s auction will operate the fields.

The CNH declared the shallow-water Ayin-Batsil area abandoned, as it failed to receive bids. The 1,096-square-kilometre block is estimated to contain 359 million boe in mostly 3P reserves, most of which is heavy crude. Following the auction, Pemex head José Antonio Gonzalez Anaya said that it was possible that the farm-out did not garner any interest due to project complexity and bidding terms.

Since December 2016, the CNH has auctioned four farm-outs, starting with the deepwater Trion field for which BHP Billiton was chosen as a partner.

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