The Mexican Ministry of Energy is now required to propose finalized terms of a Unitization and Unit Operating Agreement ("UUOA") based on international best practices and considering inputs from the parties
Zama field unitisation process continues, led by Mexico's Ministry of Energy. (Credit: C Morrison from Pixabay)
Talos Energy Inc. (“Talos,” or the “Company”) (NYSE: TALO) today announced that the unitization process of the Zama field will enter its next phase, as established in Mexican regulation. The Mexican Ministry of Energy (“SENER”) is now required to propose finalized terms of a Unitization and Unit Operating Agreement (“UUOA”) based on international best practices and considering inputs from the parties.
Petróleos Mexicanos (“Pemex”) and the Block 7 consortium, comprised of Talos and partners Premier Oil and Wintershall Dea, did not propose a UUOA to SENER within the initial timeframe established by the unitization guidelines, which ended March 25, 2021.
President and Chief Executive Officer Timothy S. Duncan commented: “Since the presentation of the original key terms for the UUOA, significant progress in reaching a common understanding has been largely achieved. We appreciate the increased momentum and commitment from Pemex towards achieving a joint resolution. As we transition into this new phase in the process, we look forward to continuing to engage constructively with both SENER and Pemex and we are confident we can achieve a positive outcome for all parties.”
Discovered in 2017 by the Talos-led consortium, Zama is a shared reservoir that extends from Block 7 to neighboring Pemex AE-0152-Uchukil Asignación in the Cuencas del Sureste, in the Bay of Campeche in Mexico.
Source: Company Press Release