Mexico upgrades Ek, Balam contracts

MEXICO CITY, May 3, 2017 – Mexico’s National Hydrocarbons Commission and Pemex on Tuesday inked an agreement to upgrade the contracts for the Ek and Balam area’s to shared production contracts without partner.

Signed by Commissioner-President Juan Carlos Zepeda and Pemex CEO José Antonio González Anaya, the deal will see state-owned entity work to “accelerate” the development of the Ek and Balam contractual areas.

In a press release, Pemex cited its expertise in shallow-water operations as reason for entering into a shallow-water production scheme contract without partner, a first for the company.

Pemex said the model would “help it increase the value of its own oil fields, while at the same time increasing the income earned by the Mexican nation.”

The agreement stipulates that 70.5% of operating profit from the assets in the Bay of Campeche, an estimated USD 5 billion over the next five years, will flow to state coffers.

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