Force majeure for Renaissance licence in Mexico

Mexico’s National Hydrocarbons Commission approved a request for force majeure status at Renaissance Oil’s Contract Area 19 (Pontón) Thursday.

The Canadian company filed for the status after encountering several problems causing delays in its development plans. According to Renaissance, environmental damage caused by previous Pemex operations has obstructed progress.

Under the force majeure status, Renaissance will be allowed to suspend operations at the block without penalty while it seeks a resolution to its dispute with the NOC.

Mexico’s recently established National Agency for Safety, Energy and Environment, better known as ASEA, will investigate the claims.

Pónton was originally granted to Geo Estratos in Mexico’s December 2015 Round 1.3; however, that company was not able to meet the financial requirements for the licence. As the second-place bidder, the block was subsequently awarded to Renaissance in August 2016.

For more news and features on Mexico, click here.