The commissioner of the CNH, Alma América Porres, indicated that the renunciation of these areas by Repsol is more for a business decision and not so much for the lack of hydrocarbons.
The Spanish company Repsol obtained authorization from the National Hydrocarbons Commission (CNH) to initiate and process the early termination procedure for renouncing all 3 oil areas that it won in the past six-year period in the rounds it carried out in Mexico.
Of the three oil areas, two are in deep waters and one is in shallow waters. This is the detail of the blocks that Repsol is leaving:
– The Contractual Area AP-CM-G01, which has a total area of 1,999,292 km², is located in Aguas Profundas, off the coast of Veracruz and Tamaulipas.
– The Contractual Area AP-CM-G05, in deep waters, has a total area of 2,241,831 km² and is located off the coast of Veracruz.
– The Contractual Area A11.CS, in shallow waters, with a total area of 532,926 km², off the coast of Tabasco.
“According to what this operator has stated in this case, this is not so much a decision as to whether or not there are hydrocarbons in these areas, but rather it is a business decision,” said the CNH commissioner, Alma América Porres.
The official added that Repsol decided to focus on another area in which it already has discoveries, so it is going to dedicate itself to developing that, but that does not mean that the ones it is leaving do not have significant potential.
“I think that all this should lead us to catalog the areas for future assignments or tenders, that is, there is here, but a company with these characteristics is required or there is here, but it is not commercial or there is none, forget about this area, so I think that it is very important that we have it in the National Hydrocarbons Information Center, if we resume the tenders, which ones would we carry out,” said Commissioner Héctor Moreira.
Then, the Governing Body of the CNH approved the requests, notified on September 8, by Repsol Exploración México, SA de CV, for the initiation and processing of the Early Termination Procedures for the waiver of all three Contract Areas.
In accordance with the contractual framework, the waiver for Contract Areas AP-CM-G01 and AP-CM-G05 and return for Contract Area A11.CS will not affect the Contractor’s obligations, such as the completion of the Minimum Work Program and the increase in the Minimum Program or, as the case may be, the payment of the corresponding conventional penalties, the abandonment, and delivery of the contractual area, in accordance with the final transition stage and the obligation to renounce and return the area.
“The CNH will have the power to accompany the Contractor, directly or through a third party, in order to validate the information that must be submitted by Repsol regarding the entire Contract Area. The Resolution is notified to the Contractor, and to the competent authorities, and will be registered in the Public Registry of the Commission”, informed the Governing Body of the hydrocarbons sector regulator.
Source: FORBES MEXICO