Sapura E&P Signs PSC in Mexico

(Energy Analytics Institute, Ian Silverman, 29.Jun.2018) – Three months after being awarded Mexico’s Block 30, Sapura and its partners sign a PSC.

“We are proud to be the only Malaysian-owned company to be awarded during this bidding round, together with our partners. This is a significant milestone for Sapura Energy Group in reinforcing our position in the industry, establishing our presence in Mexico and growing our E&P portfolio,” said Sapura Energy President and Group Chief Executive Officer Tan Sri Dato’ Seri Shahril Shamsuddin in an official company statement.

Sapura Exploration and Production, a wholly-owned subsidiary of Sapura Energy Berhad and its joint venture consortium partners, DEA Deutsche Erdoel Mexico and Premier Oil, signed a Production Sharing Contract (PSC) for Block 30 with Comision Nacional De Hidrocarburos of Mexico (CNH by its Spanish acronym) on June 27, 2018.

The signing ceremony took place in Mexico City where Sapura Energy was represented by Tan Sri Dato’ Seri Shahril. Also present was His Excellency Pedro Joaquín Coldwell, Secretary of Energy, Mexico and Juan Carlos Zepeda Molina, Commissioner President of the CNH.

Block 30, within the Sureste Basin, is a proven and prolific hydrocarbon province in the Gulf of Mexico. It is located in shallow waters of about 70 meters deep, directly to the south west of Premier’s Zama discovery and to the north of the Amoca oil field. The consortium had outbid six other bidders for this most contested block during the recently concluded shallow water bid round.

The shallow water operating conditions within Block 30 are similar to Malaysia. Sapura Energy has operated in Mexico since late 2012 and has worked closely with state oil company PEMEX on a number of offshore projects, which brings familiarity to local commercial conditions in Mexico.

Sapura E&P entered into the bidding agreement with DEA and Premier based on an equity split of DEA 40%, Sapura Energy 30% and Premier 30%.

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Author: Energy Analytics Institute (EAI)

Energy Analytics Institute (EAI) is a Houston-based independent think-tank providing unbiased research, analysis, commentaries, opinions and breaking news related to the petroleum sectors in the Latin American and the Caribbean regions.

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