Zama

Zama Oil Field Profile

Location

The Zama oil field is located in Block 7 of the Sureste Basin, approximately 60 kilometers off the coast of Tabasco, Mexico, in the Gulf of Mexico. The field is situated in waters with a depth of about 165 meters.

Discovery and Appraisal

• The Zama oil field was discovered in July 2017 by the Zama-1 discovery well, which was drilled using the Ensco 8503 floating drilling rig to a depth of 3,383 meters. This was the first exploration well drilled by the private sector in Mexico.
• The discovery well encountered an oil-bearing interval of 335 meters, containing between 170 and 200 meters of net oil pay in Upper Miocene sandstones with no water contact.
• Appraisal drilling included two additional wells (Zama-2 and Zama-3) along with a sidetrack and a well test. These appraisal wells were also drilled using the Ensco 8503 floating drilling rig and aimed to confirm the oil-water contact and assess the lateral continuity of the reservoir.

Ownership and Partners

• Initially, the development partners included Talos Energy (35%), Sierra Oil and Gas (40%), and Premier Oil (25%).
• However, following unitization and changes in the project structure, the current ownership is:
  • Pemex (operator) with 50.43%
  • Wintershall Dea with 19.83%
  • Talos Energy with 17.35%
  • Harbour Energy with 12.39%

Reserves and Production

• The Zama field is estimated to hold recoverable volumes of approximately 625.68 million barrels of oil and 243.29 billion cubic feet of gas, with a recovery rate of 37.8% for both oil and gas.
• The field is expected to produce up to 180,000 barrels of oil per day and 70.35 million cubic feet of gas per day at its peak, which is anticipated to be around 2029. This production level corresponds to about 10% of Mexico's current total oil production.

Development Plan

• The Zama field is planned to be developed with two offshore production platforms, Zama-A and Zama-B, instead of the initially proposed three platforms.
• The development plan includes 46 development wells, with 29 oil-producing wells and the remaining as water injectors.
• Two 68-kilometer-long pipelines will be installed to transport oil from the platforms to the Dos Bocas Maritime Terminal in Paraiso, Tabasco, for processing.

Infrastructure and Engineering

• The Front-End Engineering and Design (FEED) contract for the project was awarded to the French engineering company DORIS, which will collaborate with Mexican engineering companies NOMARNA and SUMMUM.
• The FEED work covers the planning of the two offshore platforms, pipelines, cables, and a new onshore facility dedicated to the Zama project at the Dos Bocas Maritime Terminal.

Environmental and Efficiency Considerations

• The Zama Unit partnership aims to minimize greenhouse gas intensity by using the best available technology, utilizing produced gas for onshore power generation, and optimizing the use of existing storage and transport infrastructure.

Investment and Timeline

• The project is expected to involve an estimated investment of $4.5 billion, with an additional $4.5 billion for operating expenses and field abandonment costs.
• The Final Investment Decision (FID) is expected in 2024, followed by the start of production in December 2025.

Regulatory Approvals

• Mexico’s National Hydrocarbons Commission (CNH) approved a $325 million budget for appraisal drilling in September 2018 and later approved the unit development plan in June 2023.

The Zama oil field is one of the world's largest shallow-water oil discoveries in the last 20 years and is expected to make a significant contribution to Mexico's energy supply over the next 25 years, supporting the growth of the country's energy sector and generating a substantial number of jobs.