• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 4 hours Oil and gas producers fire back at Democratic presidential candidates.
  • 5 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 6 mins Saudi Aramco launches largest shale gas development outside U.S.
  • 9 mins "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 11 hours Peak Shale Will Send Oil Prices Sky High
  • 3 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 7 hours CDC covid19 coverup?
  • 9 hours What Is Holding Back Geothermal Heating and Cooling?
  • 21 hours Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
Alt Text

Shale Decline Inevitable As Oil Prices Crash

Financial stress and crashing oil…

Alt Text

EIA Reports Hefty Oil Inventory Build

The EIA confirmed a large…

Alt Text

The $2 Trillion Threat To Middle East Oil

The global drive to mitigate…

Oil & Gas 360

Oil & Gas 360

From our headquarters in Denver, Colorado, Oil & Gas 360® writes in-depth daily coverage of the North American and global oil and gas industry for…

More Info

Premium Content

Interest In Mexico’s Offshore Blocks Is Surging

25 companies pre-qualified for upcoming lease sale

The Comisión Nacional de Hidrocarburos (CNH), which will conduct the lease sale, has listed a total of 25 groups that have successfully pre-qualified for the Round 2.1 sale. As might be expected, supermajors are prominent among the companies involved. Chevron (ticker: CVX), ConocoPhillips (ticker: COP) and Shell (ticker: RDS.A) have each pre-qualified. Other major international companies include Eni (ticker: E), Repsol (ticker: REP) and Total (ticker: TOT).

Several NOC’s have also applied, including CNOOC, Pemex, Lukoil, Petronas, Colombia’s Ecopetrol and India’s ONGC. International E&P’s that have signed on include Noble (ticker: NOG), Premier (ticker: PMO) and Ophir (ticker: OPHR). Five consortiums have also applied, accounting for a total of 11 companies.

(Click to enlarge)

Source: CNH

A total of 15 offshore lease blocks will be offered in this sale. According to CNH, these 15 blocks contain a combined 1.6 BBOE of recoverable resources. Block 11, in the southern section offshore from Tabasco, has the largest prospective resource of any block with a P50 of 300 MMBOE.

(Click to enlarge)

Source: CNH

Related: 4 Wildly Different Oil Price Scenarios For 2020

Interest in Mexican offshore properties is increasing as the overall oil industry recovers. Mexico’s recent deepwater offshore lease sale was highly successful, with eight out of ten blocks sold.

First private offshore oil well in 80 years recently began drilling

A major milestone was achieved in May, as a JV between Premier Oil, Talos Energy and Sierra Oil & Gas began drilling the Zama-1 offshore well. This is the first time in nearly 80 years that a private company has drilled an offshore oil well in Mexico. Each of these companies has pre-qualified for the most recent lease sale.

Privately-held Talos Energy is the operator of the well, with a 35 percent stake. Premier owns 25 percent, while Sierra holds the remaining 40 percent. According to Premier, the Zama-1 well has a P90-P10 gross unrisked resource range of 100-500 MMBOE.

Premier expects Zama-1 will take about 90 days to drill, and will have a total cost to the company of $16 million.

Tudor Pickering & Holt, however, predict that this resurgence will not have an effect for some time.

While the firm does expect shallow water production to be the next material near-term contributor to Mexican production, it will not have a significant effect for several years. TPH predicts Mexican production will decline by about 5 percent per year through the end of this decade.

By Oil and Gas 360

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News