Guest post by David Middleton
Mexico Oil Privatization Pays Off With Billion-Barrel Find
By Adam Williams and Angelina Rascouet
July 12, 2017
- Block among first awarded for private exploration in Mexico
- Premier Oil shares jump as much as 38% on Zama-1 well success
Mexico’s decision to allow private companies to explore for oil and gas started to pay off after the discovery of at least a billion barrels in a new offshore field.
A consortium of Premier Oil Plc, Sierra Oil & Gas S de RL de CVand Talos Energy LLC made the discovery in the shallow waters of the southern Gulf of Mexico just two years after winning the exploration license. It’s the first new find by a private company in the country in almost 80 years, according to consultant Wood Mackenzie Ltd., possible only after the government ended the monopoly of state-run Petroleos Mexicanos.
The Zama discovery “is the most important achievement so far of Mexico’s energy reform,” Pablo Medina, the senior upstream analyst for Latin America at Wood Mackenzie, said by email. “It is one of the 15 largest shallow-water fields discovered globally in the past 20 years.”