The Zama Unit Development Plan (“UDP”) was submitted on March 23, 2023 to the National Hydrocarbon Commission (“CNH”) of Mexico. Petróleos Mexicanos (“Pemex”), Harbour Energy plc (“Harbour”), Wintershall Dea and Talos Energy Inc. (“Talos”) announced that Pemex, as operator, had made this submission for formal approval.
UDP: An effective development plan for the Zama deposit
The UDP, developed by an Integrated Project Team (“IPT”) comprised of representatives of the four Zama unit holders, calls for the construction of two fixed offshore platforms, the installation of 46 drywells and the transportation of oil and gas to new facilities at the Terminal Maritima Dos Bocas.
In addition, the Zama unit holders have also finalized agreements for oil and gas marketing and infrastructure use based on internationally recognized market indices and terms consistent with international best practices. FEED will continue pending CNH approval of the UDP, which is expected in the next six months, allowing a final investment decision (“FID”) to be made after all regulatory approvals have been obtained.
An integrated project team for the development and operation of Zama
The Zama unit’s owners have formed an integrated project team to manage project delivery and operations during the construction phase. In other words, the project team is designed to provide technical, operational, and execution expertise, leveraging the talents of each Zama unit owner. The latter will report to the Zama unit’s operating committee, which includes representatives from each of the companies.
Talos Energy, Pemex, Wintershall Dea and Harbour are co-leading different working groups within the integrated project team. The first two are co-leaders for the planning, drilling, construction and completion of all Zama wells, as well as for the planning, execution and delivery of Zama’s offshore infrastructure. In addition, Talos, Pemex and Wintershall Dea are co-leaders of the project management office.
An effective development plan
The proposed development plan for the Zama oil field is considered effective by Talos. Indeed, the Unit Development Plan (UDP) will allow the discovery to progress rapidly to its first production. This plan represents a key step in the development of the Zama project.
Zama: a strategic oil field
Pemex and the Mexican government consider the Zama oil field to be a strategic project as it could produce up to 180,000 barrels of oil equivalent per day, which represents more than 10% of Mexico’s current oil production. Production is expected to be approximately 94% premium oil, with API gravities between 26° and 29°.
Participatory interests defined
In March 2022, the shareholders of the Zama project adopted a resolution to fix the initial interests of each of them, thereby pooling their interests. Pemex will hold 50.4% of the shares, Talos 17.4%, Wintershall Dea 19.8% and Harbour 12.4%. These shareholdings will allow each of the shareholders to contribute to the implementation of the project’s governance and its success. The shareholders have committed to continue to work together to move the project towards formal approval and implementation of the Final Investment Decision (FID).
