Mexico hydrocarbons watch: NFE prepares Lakach signing, CNH approvals

US-based New Fortress Energy said it is ready to sign a deal with Mexican state oil giant Pemex to develop the Lakach deepwater gas field after its development plan was approved by hydrocarbons regulator CNH.

The signing is likely to take place next week, NFE’s CFO Christopher Guinta told a conference, according to Reuters. The terms of the agreement have already been finalized, he said.

Lakach, on the continental shelf off the coast of Veracruz state, 131km northwest of Coatzacoalcos at a depth of 1km, was reportedly at the heart of CNH's recent leadership crisis. During its first session under a new head commissioner earlier this month, CNH allowed Pemex to revive activity at the field, which stopped in 2016.

The Lakach project includes a floating LNG production hub, with a share of the production being liquefied for export and the rest sold locally via pipeline. While Pemex is in charge of operating the field, NFE is expected to deploy the LNG barges.

Pemex's plans for the field, which did not reach commercial production after years of investment during the first half of the past decade, involve US$1.16bn to complete six wells in the area with the goal of starting production next year. The company expects output to reach some 1.8Bf3/d at its peak.

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In related news, CNH authorized Pemex to spud the Sukuum shallow water exploration well at the 0151-Uchukil area off the coast of Tabasco.

During a session on Thursday, the commission also greenlit a modified exploration plan presented by Pantera Exploración y Producción for the A8.BG contract in Tamaulipas state, and a modified development plan presented by Pemex for its 0261-M-Campo Pareto area in Tabasco state.