Mexican Government Not Seeking to Control Zama

Thursday, October 3, 2019

Mexican President Andres Manuel Lopez Obrador said on Thursday that his government is not seeking to take control of the Zama oilfield discovery, which is currently operated by a private consortium led by U.S.-based Talos Energy.

Reuters reported earlier this week that Mexico's national oil company, Pemex, wants to take control of Zama from Talos, which made the discovery on the edge of its block, adjacent to an area belonging to Pemex and where the find likely extends.

"It's a deposit that is shared with Pemex and there's no problem," Lopez Obrador told reporters at his regular morning news conference without going into further detail.

An official with the U.S. Department of State also weighed in on Zama, describing the possibility that Pemex could take operational control of the project as a "disturbing development," according to a report by Mexican newspaper Reforma on Thursday.

The newspaper quoted Kurt Donnelly, the department's deputy assistant secretary for energy diplomacy, as saying that the U.S. government would seek to defend American investments in Mexico and that this type of concern has been communicated to Mexican officials.

"Mexico seemingly was in the right path. This might indicate that they are deviating in a way," Donnelly told Reforma.

Lopez Obrador was asked for his reaction to the U.S. official's comments but appeared not to be aware of them.

Zama, offshore in the southern Gulf of Mexico, was discovered in 2017 and is believed to contain nearly one billion barrels of oil, making it the largest non-Pemex discovery in Mexico in decades

Pemex has yet to drill on its neighboring block to confirm the extension of the discovery.

The Talos-led consortium also includes Germany's Wintershall DEA and Britain's Premier Oil.


(Reporting by David Alire Garcia Editing by Bernadette Baum and Steve Orlofsky)

Categories: Energy Oil North America

Related Stories

Norway's O&G Production Beats Expectations

Ventus Energy Enters US Offshore Wind Market

Eco Wave Power Gets Permit for Its First US Wave Energy Project

Current News

Oil Edges to 2-Week High on Ukraine News

EMGS to Conduct CSEM Survey Offshore India

Poland to Open New Areas for Offshore Wind Development in Baltic Sea

Swedish Firm Eyes Multi-Megawatt Wave Energy Farm Off Grenada

Subscribe for OE Digital E‑News