The company, its partners in block 7, Pemex and the Mexican Ministry of Energy (SENER), are working to finalize terms of a unitization and unit operating agreement (UUOA).
This will address initial participating interest splits, the mechanism to re-determine those splits in future, and operatorship of the project.
A third-party reservoir engineering engaged recently by the block 7 partners and Pemex concluded that the block 7 consortium holds 49.6% of the gross interest in Zama and Pemex 50.4%.
Under the redetermination provisions in the Zama UUOA, all parties will assess the results and subsequently determine splits in line with international best practices.
Talos President and CEO Timothy S. Duncan said: “We continue to push in earnest to reach full agreement on the commercial terms of the unitization. We believe the recent third-party analysis underestimates relevant data obtained during the appraisal campaign.”
Last year, Netherland, Sewell & Associates, in an independent evaluation commissioned by Talos, concluded that the block 7 consortium holds 59.6% and Pemex 40.4% of the gross interest in Zama.
Duncan said he expected the true percentages would ultimately be realized through a re-determination process, the standard component of any unitization agreement, and other factors.
“We remain confident that Talos is best positioned to operate the field moving forward and we will further update the market once a commercial agreement on the unitization has been reached.”