Offshore Mexico Contract Goes to McDermott
McDermott International, Inc. reported Thursday that it has won a contract from Talos Energy, Inc. to perform concept and engineering services for the Zama field development project, which holds the distinction as the first offshore Mexico block awarded to a private operator.
“The Zama discovery is a significant and historic project for Mexico and our customer,” Richard Heo, McDermott’s senior vice president form North, Central and South America, said in a written statement emailed to Rigzone.
McDermott stated that it will execute the engineering services contract with io oil & gas consulting, which is a joint venture it formed with Baker Hughes, a GE company (BHGE). In addition, McDermott noted that it will manage all phases of the engineering services process, workshare engineers and designers in Mexico City and receive ongoing support from io and input from Talos.
The io JV will identify the final concept solution, stated McDermott, adding that it will provide the follow-on pre-front end engineering design (FEED) services for the Zama development. McDermott expects work on the concept selection, which has already started, to conclude in Third Quarter 2019.
“Early engagement during the conceptual and pre-FEED phases is a strategy that is proving beneficial to our customers,” said Heo. “With high estimated oil production, designing an efficient concept solution, in combination with the integrated pre-FEED studies, allows us to help Talos maximize the value of this important greenfield project.”
Discovered in July 2017, the Zama field in the Sureste Basin in the Gulf of Mexico has a water depth of approximately 540 feet (165 meters), McDermott noted. According to Talos, which owns a 35-percent interest in Zama, the field holds estimated recoverable reserves of 400 to 800 million barrels of oil equivalent (boe) with estimated peak production of roughly 150,000 boe per day.
Other owners of Zama include Sierra Oil and Gas (40 percent interest) and Premier Oil (25 percent), and McDermott stated that appraisal activities for the Zama-1 exploration well are planned for late 2018 with two additional wells. First oil is anticipated in 2022. Premier’s website notes that the Ensco 8503 semisubmersible rig will spud the first Zama appraisal well.
Talos, Sierra and Premier make up the Block 7 Consortium, which signed a pioneering pre-unitization deal with Pemex in September of this year. Premier has described Zama-1 as a “world-class oil discovery” with a gross oil-bearing interval exceeding 1,100 feet (335 meters).
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.