Sapura Exploration and Production (“Sapura E&P”), a wholly-owned subsidiary of Sapura Energy Berhad (“Sapura Energy” or “the Group”) and its joint venture consortium partners, DEA Deutsche Erdoel Mexico and Premier Oil (“Premier”), signed a Production Sharing Contract (“PSC”) for Block 30 with Comision Nacional De Hidrocarburos of Mexico (“CNH”) on 27 June 2018.
The signing ceremony took place in Mexico City where Sapura Energy was represented by Tan Sri Dato’ Seri Shahril Shamsuddin, its President and Group Chief Executive Officer. Also present was His Excellency Pedro Joaquín Coldwell, Secretary of Energy, Mexico and Juan Carlos Zepeda Molina, Commissioner President of the CNH.
“We are proud to be the only Malaysian-owned company to be awarded during this bidding round, together with our partners. This is a significant milestone for Sapura Energy Group in reinforcing our position in the industry, establishing our presence in Mexico and growing our E&P portfolio,” said Tan Sri Shahril.
Block 30, within the Sureste Basin, is a proven and prolific hydrocarbon province in the Gulf of Mexico. It is located in shallow waters of about 70 metres deep, directly to the south west of Premier's world-class Zama discovery and to the north of the Amoca oil field. The consortium had outbid six other bidders for this most contested block during the recently concluded shallow water bid round.
“We thank our partners for their confidence in our capabilities and are confident that our partnership will set a strong foundation for our Mexican ventures. Both our partners have proven operating experience globally which augurs well for the consortium," added Tan Sri Shahril.
The shallow water operating conditions within Block 30 are similar to Malaysia where Sapura E&P is well recognised. Sapura Energy has been operating in Mexico since late 2012 and has worked closely with PEMEX on a number of offshore projects which brings familiarity to local commercial conditions in Mexico.
A number of material leads and prospects have been identified within Block 30 in the tertiary clastic plays, typical of the Sureste Basin and in which Premier made the world-class Zama discovery in July 2017. The main prospect exhibits DHIs (direct hydrocarbon indicators) on the existing 3D seismic across the southern edge of Block 30, significantly de-risking a potentially material oil play there. These anomalies are similar to those seen at the Zama and Amoca oil fields. The work plan is to acquire 3D seismic data in 2019 before identifying drilling locations in 2020.
Sapura E&P entered into the bidding agreement with DEA and Premier based on an equity split of DEA 40 per cent, Sapura Energy 30 per cent and Premier 30 per cent.