Unitization as policy, stratagem or happenstance? Area 7 in Bid Round 1.1 Revisited

Posted in: Mexico Energy Intelligence | November 3, 2018 at 4:41 pm
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(Houston, Nov. 3, 2018, MEI 882)

In this report, we ask about how did it happen that the boundary of Area 7 of CNH Bid Round 1.1 left a significant portion of a reservoir on Pemex’s side, triggering negotiations for unitization. The giant reservoir that was discovered by Talos Energy and partners will be shared with Pemex, which will receive as much as US$20 billion with no risk and little cost. Absent a grid system and public rules as to the configuration of present and future Contract Areas, all CNH contractors are at risk of having to share their discoveries with Pemex or another contractor.

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Mexico Energy Intelligence

Baker & Associates offers niche-market business and policy intelligence related to Mexico's oil and gas, power and chemical industries. Over 1,000 reports have been issued in the last 20 years. Subject matter expert and publisher George Baker, who directs the firm, has carried out consulting assignments starting in the late 1970s at the height of the Oil Boom in Mexico. He brings bilingual and bicultural skill-sets to understanding and responding to challenges of business and public policy, coupled with a deep familiarity with the history and idiosyncrasies of the Mexican operating environment.