Canamex opts out of Mexico field

MEXICO CITY, November 8, 2017 – A consortium of companies will have to pay a USD 1.92-million penalty for relinquishing Contract Area 22 (Moloacán) before completing its minimum work programme, Mexico’s National Hydrocarbons Commission (CNH) announced on Tuesday.

Canamex Dutch, Perfolat de Mexico and American Oil Tools were awarded a 25-year PSC to develop the block in December 2015 during Round 1.3, after offering an additional royalty to the state of 85.69%. According to the CNH, the companies have determined that the royalty offered now makes the development “unfeasible.”

In H1 2017, Canamex filed a force majeure request with the CNH following several incidents at the field including disagreements with Pemex, blockades and union disputes, but the commission denied the request.

The consortium had initially committed to investing USD 8.5 million in Moloacán’s evaluation and development phases. The 46-square-kilometre Moloacán field contains 3P reserves of 1.6 million boe of heavy oil and gas.

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