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Fieldwood Energy delays in plans: CNH rejects budget request

CNH FIELDWOOD ENERGY CAPITAL

Fieldwood Energy asked for more budget in the Ichalkil and Pokoch deposits. The Commission considers this request incoherent.

Fieldwood Energy E&P Mexico asked for changes in budget and time lapses to achieve its financial plans in the Ichalkil and Pokoch deposits. The National Hydrocarbons Commission (CNH) considers this request incoherent

Along 2020 Fieldwood Energy has drilled two wells, recovered two boreholes, and initiated two more drills.

Although the company asked for less budget (604.33 million dollars) than the accepted in the 2019 plan (621.6 million dollars), commissioners considered this proposal would be more expensive in the long-run.

CNH stressed the company should begin production this month in its deposits located in the Campeche’s region of the Gulf of Mexico. Nevertheless, Fieldwood now states its production will start on April 2021

This delay, according to the company, results from the coronavirus pandemic and unexpected drilling issues. Commissioners considered the firm could solve these problems by now.

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Fieldwood Energy in context

The enterprise also asked for a rise in the budget related to its measuring equipment. In response, CNH stated it was a non-sense request, given the project’s lack of advance.

These budget changes imply more government expenditures in 2021, according to experts. The decision to refuse changes are the result of the lack of transparency and certainty towards the project.

The Commission requested more technical information about the projects, but the firm was not exact.  

Rogelio Hernández, Commissioner President, concluded recalling this was a shared-production contract. In that regard, Fieldwood is a private contractor to the State, and it is CNH’s responsibility to procure the national interest.

The Commission rejected Fieldwood Energy E&P Mexico’s work-program and budget changes during its 13th Ordinary Session.

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