Pemex to seek partners for 2 shallow water farm-outs

Tuesday, October 18, 2016

Pemex's board has given its approval for the state oil firm to seek partners to farm out E&P contracts for the Ayin and Batsil shallow water fields in the Gulf of Mexico.

Located in the Campeche Sound, the fields are at a depth of 160m and have total 3P reserves of 281Mboe, 46mn of which correspond to proven reserves, 77mn to probable and 158mn to possible reserves, the company said in a statement.

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Pemex's request to farm out the fields is part of its strategy to create alliances with the private sector, and to take advantage of the technological skills of its partners to consolidate the NOC as a competitive company.

Pemex has the world's lowest recovery costs in shallow water, the company said, and now, thanks to its alliances, will align its operations with best international practices. The NOC boasted US$23/b recovery costs prior to the country's first shallow water auction last year as part of Round One.

The two shallow water fields could be incorporated into the first tender of Round Two, which will comprise 15 blocks and is scheduled for March 2017, Pemex said.