Mexico is the 12th largest oil producer in the world and has one of the largest proven reserve bases globally. In 2017, DEA had a successful market entry in Mexico, with the award of one licence as partner in Round 2.1, followed by the award of operatorship of the producing oil field Ogarrio in the same year and of three offshore licences as operator in Bid Round 3.1 in 2018.
In December 2018, DEA announced the acquisition of Sierra Oil & Gas. Sierra holds interests in a portfolio of six exploration and appraisal blocks in Mexico, including the world class Zama discovery. The transaction is an important milestone, fulfilling DEA’s objective of building a significant portfolio in the Mexican upstream market.
DEA is operator of the Ogarrio oil field. The 50 percent licence share that DEA acquired, was offered in a farm-out auction of the National Hydrocarbons Commission (CNH) in October 2017. Pemex is the licence partner, holding the remaining 50 percent. The licence contract was signed in March 2018.
Ogarrio offers DEA high potential, to leverage the company’s key competences and technical capabilities. The field provides access to production and additional development potential in one project.
With the right concepts in place, DEA plans to improve the recovery of the field in an economic and sustainable way. The onshore field Ogarrio is located 107 kilometres west of Villahermosa in the state of Tabasco, in the southeast of Mexico. The mature field was discovered in 1957 and since then, 527 wells have been drilled. More than 100 wells are active and produce about 10,000 barrels of oil equivalent per day (status March 2018).
In March 2018, DEA was awarded three offshore exploration blocks as operator in the shallow water bid round 3.1: Block 16 and 17 with its partners Pemex Exploration and Production and Cepsa and Block 30 jointly with its partners Sapura E&P and Premier Oil.
Block 16: Overview
Block 16 and 17 are located in the Tampico-Misantla Basin and Block 30 in the Sureste Basin in the Gulf of Mexico.
In addition, DEA holds a 30% share of Block 2, with Pemex holding the remaining 70% as operator. Block 2 comprises 549 sq. km and is located in the in the immediate vicinity of Block 16 and 17. The water depth ranges from 40 to 260 m.
Block 17: Overview
Block 30: Overview
Premier Oil (30%)
Sapura E&P (30%)