A young independent sees growth in Mexico

Mexico

Gustavo Baquero, managing director of Harbour Energy Mexico, talks to The Energy Year about Mexico’s importance in the company's growth strategy, the key role of public-private collaboration in the country and recent developments at Zama and Hokchi. Harbour Energy is one of the largest independent oil and gas E&P companies globally.

How important has Mexico become in Harbour Energy’s corporate growth strategy?
Harbour, established over a decade ago, is a young independent. Our strategy focuses on seizing opportunities in the global hydrocarbons sector, especially as major companies transition to cleaner energy portfolios, leaving valuable oil and gas assets orphaned, with huge potential. In 2014, we embarked on a growth strategy through M&As, under which, starting from zero barrels of production, we have now surpassed the 450,000-bopd benchmark today.
A pivotal milestone was our acquisition of Wintershall Dea’s assets in Mexico. In September 2024, we completed this transaction, valued at around USD 11 billion incorporating 11 E&P contracts into our portfolio. These assets encompass shallow-water, deepwater and onshore fields, including prolific plays such as Zama, Kan, Hokchi and Ogarrio.
Currently, our strategy includes both inorganic and organic growth, with Mexico playing a fundamental role. We have a very diverse portfolio in this country, with more than 400 million barrels of resources. This positions us as one of the largest private E&P firms in Mexico in terms of 2P (proved and probable) and 2C (contingent) resources. We also have multiple projects undertaken in collaboration with Pemex. For instance, we are operators in the Ogarrio field where Pemex holds a 50% share and maintain a 32.2% non-operated interest in Zama (Block 7), alongside Pemex’s 50% interest.
Although our current production in Mexico is around 12,000 barrels per day, the potential of our assets is substantial and will contribute to our medium-term overall production. We aim to maintain a reserves-to-production ratio exceeding eight years. Our goal is to achieve a net production benchmark of 100,000 barrels per day by executing our development plans on time. Notably, Zama has an estimated production of 180,000 bopd, with our share representing approximately 60,000-65,000 bopd. Thus, Mexico plays a crucial role in Harbour Energy’s global corporate strategy.

How essential is collaboration between Pemex and private operators in strengthening Mexico’s upstream sector?
The new administration presented its new strategic roadmap for oil and gas by which it aims to reach 1.8 million bopd. It highlights strategic projects such as Zama and Trion as elemental leavers to achieve this production target. This means that there is an urgency around developing Zama as soon as possible, making us a key partner in upgrading Mexico’s upstream sector. Our international experience and track record demonstrate our capacity to execute projects effectively. Specialising in offshore operations, we possess the required financial, operational and technical capabilities required.
The government and Pemex have realised that they need private industry support. Public-private collaboration is vital to advancing the country’s hydrocarbons sector at this moment. Moreover, the number of large private E&P companies has shrunk, as many IOCs and E&P independents have exited the country. We are among the top five companies standing strong and committed to Mexico’s hydrocarbons future.
The upstream sector has undergone consolidation and is now entering a phase of collaboration. Harbour Energy aims to serve as an enabler, fostering co-operation among all players to boost the country’s production.
There has to be a sense of urgency. The country’s production stands at around 1.5 million bopd and it aims to hit 1.8 million in the next six years. However, the rate of decline is equal to 30,000 bopd monthly, or 360,000 bopd yearly. In perspective, to compensate for the annual decline, the country would need to bring two Zama projects on stream yearly.
This situation poses an important challenge for Pemex and all private operators involved. The same goes for gas. Despite the potential in-country, Mexico imports around 60% of the gas it consumes. We have to work together to ensure the nation’s energy security.

What recent developments have occurred in the Zama and Hokchi projects?
We have a 32.2% non-operated interest in Zama, which was discovered in 2017. Being part of Block 7, this asset is located in shallow waters of the Sureste Basin and is operated by Pemex. The proposed development concept includes two offshore platforms and onshore facilities at Dos Bocas.
In March 2023, the Zama partners finalised the unit development plan (UDP) and submitted it to the regulator. The plan was approved in June 2023, and the partners formed an integrated project team (IPT) to manage delivery of the development. FEED work began in mid-2024 ahead of a potential FID.
In Q1 2025, we completed the FEED phase. Per the development plan approved by the CNH, first oil is expected by the end of the decade. We are now looking at technical options to accelerate this timeline. We have a USD 6-billion gross investment plan for our Mexican portfolio, with Zama alone accounting for approximately USD 5 billion, highlighting its significance.
Another of our key projects is the Hokchi field, operated by Hokchi Energy. We have a 37% non-operated interest in this field through the acquisition of Wintershall Dea. This shallow-water field is today one of the largest producing oil assets in Mexico and has two offshore platforms connected by pipeline to an onshore processing facility. Hokchi achieved first oil in 2020 and currently produces around 20,000 bopd, making it our largest producing asset in Mexico.
We are focused on maintaining production levels through water injection to make the plateau as high as possible. Beyond production, Hokchi has also excelled in industrial safety performance.

What other plays does Harbour Energy hold?
Harbour Energy holds interests in eight exploration and appraisal blocks in the Gulf of Mexico, comprising three in the Tampico-Misantla Basin and five in the Sureste Basin. Block 30 is a key asset, where we have a 70% operated interest, along with TotalEnergies which holds a 30% interest. It includes the Kan discovery, made in 2023 via the KAN-1 well.
In May 2025, we announced the successful appraisal of the Kan discovery. Based on new data from the appraisal well, we have significantly increased the oil-in-place estimate for Kan from 200 million–300 million barrels to 500 million boe of oil-in-place, with updated gross recoverable resources of approximately 150 million barrels – a 50% increase over initial projections. This outcome strengthens Harbour Energy’s strategic position in Mexico and supports its broader commitment to regional energy security through responsible and efficient resource development.
Adjacent to Kan, we hold a 25% non-operated interest in Block 29, home to the celebrated deepwater oilfields Polok and Chinwol, operated by Repsol. These fields are starting the FEED phase. This area also hosts other blocks operated by IOCs, such as Repsol and Eni. A collaborative approach could optimise offshore development by leveraging shared infrastructure instead of having stand-alone projects. We are all seeking the best solution to develop the area.

Tell us about the development and waterflood project envisioned for the Ogarrio field.
Ogarrio is a mature onshore oilfield spanning more than 150 square kilometres in Tabasco. This asset is a 50-50 venture between us and Pemex. Since production began in the 1950s, over 500 wells have been drilled. As a result, this brownfield has suffered a production decline. Today, the field has 80 active wells producing around 6,000 bopd. We have ongoing workovers and plan to drill an additional well this year.
To boost recovery, a waterflood project has been launched, with the FEED phase completed in March 2025. From there, we will prepare to take the FID. With this waterflood programme, we are looking to nearly double the current production.. This venture is beneficial not only in terms of production but also aligns with our environmental commitments.
We plan to eliminate flaring at Ogarrio, reducing its energy intensity. Additionally, as part of efforts to achieve net-zero emissions, we deploy drones to monitor for leaks. Ogarrio is a strategic asset where we demonstrate operatorship capabilities alongside Pemex while maintaining efficiency and environmental responsibility. Our contract runs until 2043, which gives us a good timespan to develop the field in the most efficient way.

What goals has Harbour Energy set for the Mexican hydrocarbons market?
We aim to continue demonstrating our efficiency, safety and environmental responsibility while contributing to socio-economic development in the areas where we operate. These goals align with our operational targets.
We are committed to executing our development plans, aiming to produce 100,000 bopd – 10 times our current output – by the end of the decade. Lastly, we want to play a leading role in the country’s upstream, with collaboration with Pemex, authorities and other private operators.
Despite challenges in Mexico’s hydrocarbons sector, we see vast potential and opportunities. A new cycle is emerging in the country’s energy industry, particularly in oil and gas. We remain cautiously optimistic, as authorities acknowledge the crucial role of private operators in achieving this administration’s targets.

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