Repsol upping its stake in Mexico’s deepwater field after buying Thai player’s share

Repsol Exploración México, an affiliate of Spain’s energy giant Repsol, has inked a sale and purchase agreement (SPA) with the Mexican subsidiary of Thailand’s national oil and gas company PTT Exploration and Production (PTTEP), Mexico PTT Exploration and Production, to buy the latter’s portion in an exploration block offshore Mexico.

As informed, PTTEP has sold its entire 16.67% stake in Mexico’s Block 29 project to Repsol, enabling the latter to increase its operating interest in the project from 30% to 46.67%. The transaction is expected to be finalized by the year’s end, subject to the conditions provided for in the SPA.

The project in question, located in the southern part of the Gulf of Mexico, is in the exploration phase. As disclosed by the Thai player, this divestment forms part of a portfolio rationalization effort and is meant to align with its latest investment strategy.

Repsol drilled the block’s Polok-1 and Chinwol-1 exploration wells using the Maersk Valiant drillship in May 2020. The drilling campaign confirmed high-quality reservoirs with excellent properties, encountering net oil pay of 200 meters and 150 meters, respectively. 

Stena IceMAX drillship was hired for an additional drilling campaign, which was to follow in May or June 2021. Last year, Repsol handed out a contract to DORIS to deliver concept engineering of the subsea production system (SPS) and subsea umbilical, riser, and flowline (SURF) for the Block 29 project.

Apart from Repsol as operator, the other partners in the field are the Mexican subsidiary of Petronas, PC Carigali Mexico Operations (28.33%), and Habour Energy, which got its hands on a 25% interest after wrapping up the acquisition of Wintershall Dea’s assets in early September.