High industry interest in Zama stake, Premier Oil says

UK oil company Premier Oil has extended the bid deadline for its interest in the giant Zama field offshore Mexico as “to accommodate levels of interest,“ for which Premier says are significant.

The Zama discovery – dubbed one of the largest shallow-water finds in decades – was made in 2017 by the U.S. oil company Talos.

Talos, the operator of the discovery, holds a 35% participation interest, while Premier Oil and Sierra Oil & Gas (a Wintershall Dea subsidiary) have 25% and 40% participation interests, respectively.

Premier in August started a formal sales process for its interest in the fully-appraised Zama oil field offshore Mexico citing considerable industry interest in shallow water Mexico.

“There has been significant industry interest in the process and, as a result, Premier has extended the bid deadline to December to accommodate this,” Premier Oil said Thursday.

Talos last week said it was working with Netherland, Sewell & Associates, Inc. to complete a formal resource report by year-end 2019.

“The company reiterates its previously stated resource guidance in the upper half of its pre-appraisal estimated range of 400 – 800 MMBoe gross recoverable resources,“ Talos said last week.

Premier Oil, which is a partner in the field, during the summer refined its gross resource estimate of the Zama structure to 670-810-970 mmboe (P90-P50-P10).

The Zama field is located in Block 7 of the Sureste Basin offshore Mexico in the Gulf of Mexico and has a water depth of approximately 540 feet (165 meters). The field is expected to be brought online in 2022, with an estimated peak production of approximately 150 MBOE/day.


Offshore Energy Today Staff

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