Talos Energy and Petróleos Mexicanos (Pemex), together with the rest of the participants, are working towards the finalization of the Zama Field Development Plan.

These companies will then submit the plan to the National Hydrocarbons Commission (CNH) for final approval.

On July 15, 2015, a consortium led by Talos was awarded Block 7 (Block 7 Consortium) with a term of 30 years, starting in September 2015, and extendable for two additional five-year periods.

Talos’ interest in Block 7 is 35% and Talos is the operator.

The Block 7 Consortium made a significant discovery in Block 7 after drilling Zama-1 in 2017, less than two years after signing a production sharing contract (PSC) for the block with Mexico‘s upstream oil and gas regulator, the CNH).

Subsequent to the Zama-1 discovery, Talos drilled three additional wells to further appraise the discovery.

At the conclusion of the three-well appraisal program, Talos determined that the Zama Field likely extended into a nearby offshore block owned by Pemex.

On July 7, 2020, we received a notification from the Mexican Ministry of Energy (Sener) instructing the Block 7 Consortium and Pemex PEMEX to unitize the Zama Field.

Accordingly, the Block 7 Consortium and Pemex engaged a third-party reservoir engineering firm to evaluate the initial tranche interest within the Zama Field, which concluded that the Block 7 Consortium owns 49.6 percent of the gross interest in the Zama Field and Pemex owns 50.4 percent.

Talos energy

Then, on July 2, 2021, Sener notified Talos that it had designated Pemex as operator of the Zama unit.

During the third quarter of 2021, Talos filed Notices of Dispute with the Mexican government regarding decisions made by Sener, including the designation of Pemex as operator of an asset yet to be unitized.

On March 23, 2022, we received a final Unitization Resolution (UR) from Sener with respect to the development of the Zama Field.

The UR defines the rights and responsibilities of Pemex and the Block 7 Consortium (collectively, the Zama Field Participants) with respect to the development of the Zama Field.

Finally, on May 26, 2022, the Zama Field Participants ratified the creation of a Unity Operating Committee, with participation from each party, to oversee the development of the Zama Field.

Since then, Talos has actively engaged with Pemex and the rest of the Block 7 Consortium to advance the development.

Talos has a 17.35% interest in the unitized Zama Field.