Home Tech Mexican regulator poised to referee dispute over who runs shared oil find...

Mexican regulator poised to referee dispute over who runs shared oil find By Reuters

35
0

Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters

Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters


Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters

© Reuters. Mexican regulator poised to referee dispute over who runs shared oil find

Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters

By David Alire Garcia

Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters

MEXICO CITY (Reuters) – The dispute over who will run operations for a major offshore oil discovery in Mexico could eventually come down to the technical opinion of the country’s independent oil regulator, according to one of the body’s commissioners.

Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters

Closed-door talks between national oil company Pemex and a private consortium led by U.S.-based Talos Energy (N:) over who will control operations of the so-called Zama project in the southern Gulf of Mexico have recently slowed, according to the Talos chief executive.

Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters

If they deadlock, the National Hydrocarbons Commission or CNH would be called upon to provide the country’s energy ministry with a legally binding technical assessment that would determine the project’s operator, Commissioner Sergio Pimentel said in an interview.

Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters

“The energy ministry has to take as a baseline the technical aspects that the regulator provides it,” said Pimentel, a lawyer. “Legally, it can’t go in a different direction.”

Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters

Both Pemex and Talos have publicly expressed a desire to operate Zama.

The struggle over who will run operations for Zama, as well as which side holds most of the nearly 700 million barrels it is believed to contain, marks a major test case for the government of President Andres Manuel Lopez Obrador, who has repeatedly pledged to boost Pemex and downplayed the role of private oil companies.

Pimentel added that “ideally” Pemex and Talos will together reach an agreement, and then present a joint development plan.

Earlier this month, commissioners were briefed on Pemex’s exploration plans for its adjacent block to Zama, after the regulator requested the briefing, but Pimentel said the meeting was confidential.

Last year, Pemex sought and received authorization to drill its Asab well near the border between the two blocks, but it more recently said it would drill a different well called Niquita, within its block but further to the east and potentially associated with a separate prospect.

In its latest plan, Pemex also put Asab in a more speculative drilling scenario, and Pimentel said the state-run firm will eventually need to seek fresh authorization to drill Asab.

The Talos-led consortium has already notified the government that it believes Zama extends into Pemex’s next-door block, but Pemex has not done the same and it remains unclear what steps toward an eventual joint operating agreement for Zama the energy ministry has taken.

The energy ministry did not respond to requests for comment.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Mexican Regulator Poised To Referee Dispute Over Who Runs Shared Oil Find By Reuters

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here