Talos to have formal Zama resource report by year-end

U.S. oil company Talos will have a formal resource report on its large Zama oil discovery offshore Mexico by the end of the year. 

Talos made the discovery in 2017 – one of the largest shallow-water finds in decades – and has during the summer completed the appraisal program at the field aimed to better define the resource potential there.

In an update on Wednesday, Talos said: “Following the successful completion of the Zama appraisal program, Talos is working with Netherland, Sewell & Associates, Inc. to complete a formal resource report by year-end 2019. The company reiterates its previously stated resource guidance in the upper half of its pre-appraisal estimated range of 400 – 800 MMBoe gross recoverable resources.“

As previously reported, Premier Oil, Talos’ partner in the field in June refined its gross resource estimate of the Zama structure to 670-810-970 mmboe (P90-P50-P10).

Talos on Wednesday reminded it had initiated early FEED work to allow for „the earliest possible initial production date and is utilizing all of the appraisal data to create an optimal development plan for the field.“

It also said that  Zama unitization discussions with Petróleos Mexicanos (“Pemex”) were ongoing. As reported last year, the two companies have been in unitization talks as the Zama find might extend into a nearby Pemex-owned offshore block.

The Zama field is located in Block 7 of the Sureste Basin offshore Mexico in the Gulf of Mexico and has a water depth of approximately 540 feet (165 meters). The field, one of the largest shallow-water fields discovered in the past 20 years, is expected to be brought online in 2022, with estimated peak production of approximately 150 MBOE/day.

The U.S. company McDermott was selected in November 2018 for concept and engineering services for the Zama field development project.

It has previously been said that the plan to develop Zama might include three production platforms across the structure. The field would continue to be developed through 2024 when Platform C is expected to be installed. Talos in September 2019 said that the Final Investment Decision for the Zama development might be made in 2020.

Talos on Wednesday posted a net income of $73,3 million for the third quarter of 2019, up from $13 million in the corresponding quarter of 2018

Production for the third quarter of 2019 was 4.8 MMBoe down from 2Q 2019 production of 5,3 MMBoe. Talos said its production was affected by impacted by Hurricane Barry in the Gulf of Mexico.

Offshore Energy Today Staff

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