Pemex reportedly ready to invest 'whatever it takes' in the Zama field

Mexico’s national oil company Pemex is reportedly ready to massively invest in the high-potential Zama field once it reaches an agreement with Houston-based Talos Energy.

"[Talos is] still a bit reluctant. We hope they'll finally accept, and that we can get the project started," Pemex CEO Octavio Romero Oropeza told Reuters.

Talos discovered the Zama field in its block 7 lease in 2017 in consortium with Germany’s Wintershall DEA and Harbour Energy (ex-Premier Oil). Potentially hosting 850 million barrels of oil equivalent, Zama is the largest discovery made to date by a private company in Mexico, facilitated by the 2013-14 energy reforms, and considered one of the 10 largest oil discoveries in the country's history.

In the interview, Romero promised to invest “whatever it takes,” possibly “billions of dollars,” to develop Zama.

Pemex is one of the most heavily indebted oil companies in the world. In its Q2 results call Thursday, Romero said Pemex holds US$108bn in financial debt.

Talos agrees that the block 7 deposit reaches into the neighboring block assigned to Pemex’s exploration and production unit PEP, but both disagree on the extent of the overlap.

Talks on a unification agreement failed in March 2021. Energy ministry Sener awarded operatorship to PEP in July 2021, giving it an 82.65% stake and Talos 17.35%.

However, hydrocarbons regulator CNH must still greenlight any final agreement, approved by all stakeholders, before development can advance.