Oil regulator CNH greenlights Mexican E&P plans

MEXICO CITY, November 16, 2018 – Mexico’s National Hydrocarbons Commission (CNH) has authorised five E&P plans worth USD 380 million to move forward in 2019, international media reported Thursday.

Southeastern Basins Area 11 and Southeastern Basins Area 14, operated by Repsol and Eni, respectively, will both undergo exploration studies with no drilling. Eni will drill the Saasken-1 well at Southeastern Basins Area 10 and Lukoil will drill the Otomi-West well in Southeastern Basins Area 12, Reuters reported.

The largest CNH-approved project, worth around USD 251 million, will see Talos Energy drill one well at Block 7 next January. Depending on the results, a second well may also be drilled.

Yesterday, McDermott International announced its joint venture with Baker Hughes, a GE company, had been picked to carry out a pre-FEED study at Block 7’s Zama field ahead of appraisal drilling.

“Early engagement during the conceptual and pre-FEED phases is a strategy that is proving beneficial to our customers,” Richard Heo, McDermott’s senior vice-president for North, Central and South America, said in a company statement. “With high estimated oil production, designing an efficient concept solution, in combination with the integrated pre-FEED studies, allows us to help Talos maximise the value of this important greenfield project.”

Read our latest insights on: