Mexico’s first two onshore oil and gas projects to be developed by joint ventures (JV) between state-owned Pemex and new partners were approved by regulators on April 28.
The auctions to pick Pemex’s partners for the two extraction projects covering the Cardenas-Mora and Ogarrio fields, both located in southern Tabasco state, will take place on Oct. 4.
In both tie-ups, Pemex will have a 50% stake, while the partners will have the remaining half and will be designated as the operators of the projects.
Both projects feature existing infrastructure due to past Pemex work in the areas as well as ongoing production.
Cardenas-Mora features output of about 7,200 barrels per day (bbl/d) of crude oil, while Ogarrio produces about 6,600 bbl/d.
In a bid to make the projects more attractive to potential investors, winning bidders will immediately be able to market their part of the projects’ production and half of certain assets like existing wells and pipelines will be transferred to the operator.
The National Hydrocarbons Commission, Mexico’s oil regulator, has previously approved both deepwater and shallow-water JVs for Pemex, with the first one covering the company’s Trion deepwater field won by Australian mining and oil giant BHP Billiton late last year.
A landmark energy overhaul finalized in 2014, which ended Pemex’s monopoly over the production of oil and gas, permits the company to enter into first-ever JVs as a means to share risks and reverse a prolonged slump in crude output.
Recommended Reading
BP’s Kate Thomson Promoted to CFO, Joins Board
2024-02-05 - Before becoming BP’s interim CFO in September 2023, Kate Thomson served as senior vice president of finance for production and operations.
Magnolia Oil & Gas Hikes Quarterly Cash Dividend by 13%
2024-02-05 - Magnolia’s dividend will rise 13% to $0.13 per share, the company said.
TPG Adds Lebovitz as Head of Infrastructure for Climate Investing Platform
2024-02-07 - TPG Rise Climate was launched in 2021 to make investments across asset classes in climate solutions globally.
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
HighPeak Energy Authorizes First Share Buyback Since Founding
2024-02-06 - Along with a $75 million share repurchase program, Midland Basin operator HighPeak Energy’s board also increased its quarterly dividend.