A group of 23 national and international banks have refinanced US$8 billion of PEMEX’s total debt, while Shell strengthened its commitment to Mexico and Talos finished its last appraisal well on Zama.
Check out our Interview of the Week with Carlos Palavicini, Regional Manager Latin America of Petrolink, where we discussed the company’s industry-leading use of real-time data analytics to improve well management for industry players. See it here!
PEMEX Debt Refinanced in Part
Twenty-three national and international banks this past week agreed to refinance US$8 billion of PEMEX debt in what was, said President Andrés Manuel López Obrador, “the most important operation of its kind in Mexican history.”
The group of 23 financers consists of 14 of the world’s 20 most important banks, including HSBC and JP Morgan.
Shells Moving Forward with E&P Plans
Following the recent news that Shell had received approval from CNH for exploration plans that could, if all are carried through, bring its investment into Mexico’s deepwater to US$2.4 billion, the Dutch supermajor has now contacted 11 rig contractors to bid for services. The invitation, another positive sign for the ramping up of industry activities, will see companies compete to drill up to eight exploration wells.
Talos completes Zama Appraisal Program
Talos Energy, together with consortium partners Sierra Oil & Gas and Premier Oil, announced the successful completion of its third exploration well on Block 7, Zama-3, which is the final drilled for the block’s appraisal. Tim Duncan, Talos CEO, said that the appraisal program had turned up “outstanding subsurface properties.”
The consortium will now move on with FEED work and continue unitization discussions with PEMEX ahead of making a Final Investment Decision in 2020.
AMLO Overrides CNH
This past week, President López Obrador canceled the approval of PEMEX’s plans to carry out fracking on the onshore Humapa Field, despite CNH having approved the NOC’s development plan. The president, who was critical of the method used to reach unconventional resources during his presidential campaign, restated his prohibition of fracking during his period in power.
PEMEX Year-on-year Production Rate Fall
According to the most recent statistics published by PEMEX, the year-on-year rate of production fell 10.1 percent between May 2018 and May this year.
These stats demonstrated the huge drop off in production PEMEX is battling to halt, as NOC Director Octavio Romero explained this week.