From the Field
DEA moves to acquire Mexico’s Sierra
MEXICO CITY, December 5, 2018 – Germany’s DEA Deutsche Erdoel has agreed to buy Mexican E&P player Sierra Oil & Gas for an undisclosed amount, the company said in a Tuesday press release.
Through the deal, DEA will enter six new blocks in the Gulf of Mexico, adding 9,400 square kilometres to its portfolio. One of Sierra’s licences is shallow-water Block 7, where the massive Zama discovery was made in May 2017.
“The acquisition of Sierra will allow DEA to achieve materiality in the highly strategic and competitive Mexican upstream market and provide us with a high-quality exploration and appraisal portfolio in one of the world’s most sought-after offshore basins, as well as a strong team,” DEA CEO Maria Moraeus Hanssen said.
Once the acquisition is finalised, expected in H1 2019, DEA will hold stakes in one onshore production block and 10 offshore exploration blocks in Mexico.