Amanda Nelson / IHS Markit
The recent news of a major discovery and a planned fast-tracked development in the Sureste Basin comes as a validation both of Mexico’s celebrated energy reforms and its ability to adapt to changing market forces. When reporting on the potentially world class Zama discovery, Talos Energy CEO Tim Duncan commented that the discovery represents exactly what the Mexican government hoped to achieve with the reforms: new capital and participants leading to new resources and higher revenues.
Along the same lines, when Eni announced an increased reserve estimate and plans for an accelerated development plan of the Amoca field, CEO Claudio Descalzi commented that the company hopes to be the first foreign investor to establish an operated, commercial field in Mexico, marking what he termed would be the first tangible success of the energy reforms. Although it may now appear all but assured that Mexico’s energy reforms will lead to increased production and a more robust energy sector overall, for a time that outlook was far from certain, as Mexico’s first bid round was very nearly derailed by the crash in oil prices.
Read full story here.