Pemex Will Operate Mexico's Biggest Private Oil Find

Pemex Will Operate Mexico's Biggest Private Oil Find
Mexico's energy ministry has designated Petroleos Mexicanos as the operator of the country's largest oil discovery by private companies.

(Bloomberg) -- Mexico’s energy ministry has designated Petroleos Mexicanos as the operator of the country’s largest oil discovery by private companies, in the latest sign of the government’s nationalist approach to the energy industry.

The Zama field, discovered in 2017 by a private consortium led by Talos Energy Inc., will be operated by the state-own producer, according to a person familiar with the situation who asked not to be named because the decision wasn’t made public yet. The resolution ends a long-standing conflict between Pemex, as the state company is known, and Houston-based Talos over the operation of the field, which contains as many as one billion barrels of oil equivalent.

Spokespeople from Mexico’s energy ministry and Pemex did not immediately respond to comment requests. Timothy Duncan, chief executive officer of Talos, did not immediately respond to a call seeking comment.

Newspaper Reforma reported earlier that Talos and Pemex were informed by Mexican authorities in a letter that the state company had the technical capacity and conditions to be operator of the reservoir. The field, shared by both companies, is located in Mexico’s Campeche Bay.

--With assistance from Max de Haldevang.

© 2021 Bloomberg L.P.



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