German DEA, Egyptian Cheiron to partner with Pemex, become operators in Mexico

Mexico

Deutsche Erdoel AG (DEA) of Germany has acquired a 50% license share and operatorship of onshore Ogarrio oil field in southern Mexico’s Tabasco state 197 km west of Villahermosa.

The share was offered in the latest farmout auction of the National Hydrocarbons Commission. Petroleos Mexicanos (Pemex) will be the partner, holding the other 50%.

Separately, Cheiron Holdings Ltd. of Egypt, part of the Pico Group, was let a contract to join Pemex in a 50-50 partnership to develop onshore Cardenas and Mora fields, also in Tabasco.

DEA said Ogarrio’s current gross production is about 12,500 boe/d. The mature field was discovered in 1957. Nearly 530 wells have been drilled. More than 100 wells are currently active.

mexico_ogarrio_block

In June, DEA won a shallow water exploration license on Block 2 in consortium with Pemex in the Gulf of Mexico.

No bids were received recently for two shallow water fields under a production-sharing contract.

“At the end of the day the result is favorable for Pemex, which will receive cash payments for more than $500 million,” Pemex’s Chief Executive Jose Antonio Gonzalez Anaya said at an Oct. 5 news conference.

(Source: Oil & Gas Journal)

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