Harbour Energy, an energy investment vehicle formed by EIG Global Energy Partners, today announced it would likely keep its stake in the giant Zama oil development in Mexico. Accordingly, through a new company soon to be created by Chrysaor Holdings Ltd and Premier Oil Plc, this would be possible.
In fact, this action would reverse an earlier decision by the indebted North Sea driller, Harbour Energy, to exit the project.
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Harbour Energy: a new company to keep Mexico’s Zama oilfield
Harbour Energy today announced it would likely keep its stake in the giant Zama oil development, the most extensive new oil find by a private company in decades in Mexico. Therefore, this would be possible through a new company soon to be created by Chrysaor Holdings Ltd and Premier Oil Plc.
Indeed, Premier began trying to sell its 25% stake in the Zama field in 2019. Since then, two different factors have stalled the process. For instance, a dispute over who should operate the development. Also, a proposed reverse takeover deal with Chrysaor. Furthermore, the latter hasn’t yet disclosed its plans for Premier’s projects.
With the takeover, possibly complete by the end of March 2021, Premier will start trading under its new name, Harbour Energy Plc, on April 1. Therefore, the new company will continue developing the Zama field, Premier Chief Financial Officer Richard Rose said.
Thus, “they like Zama, and I fully anticipate that they will look to retain it and develop,” he said.
Negotiations with Pemex
According to Bloomberg, Chrysaor declined to comment. Nevertheless, the company said in October that Premier’s reverse takeover plans would expand its global footprint, including in Latin America.
In fact, the Zama deposit, found in 2017 and operated by Talos Energy Inc., extends into a license block held by Mexico’s state-run energy firm Petroleos Mexicanos (PEMEX).
Furthermore, in December last year, Mexico extended a deadline for a group led by Talos. In fact, to reach an agreement with Pemex over ownership of the Zama discovery. However, the companies have until March 25 to agree, or Mexico’s Energy Ministry will decide on their behalf.
Rose said the so-called unitization process at Zama “is concluding;” and a new operating agreement could be finalized in the next few weeks.