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Mexico’s state-owned oil company, Pétroleos Mexicanos (Pemex), has confirmed an attack on a platform in the Ku-Maloob-Zaap (KMZ) oil complex located off the coast of Campeche state.

From the Pemex statement:

  • On the night of 13 February, eight unauthorised individuals boarded the Zaap-D platform in the KMZ.
  • The intruders stole radio equipment, various tools, and breathing apparatus.
  • No employees were physically harmed, although two workers were evacuated due to stress-related concerns.
  • In response, the company has strengthened security, deploying additional security personnel and coordinating with the navy ministry (Semar). (Question: What security measures were in place prior to the incidents?)
  • Mexican President Claudia Sheinbaum confirmed that the navy was “supporting Pemex in monitoring and responding to any assault on offshore platforms.” (Question: Did they apprehend the perpetrators?)

Not mentioned by Pemex, but reported elsewhere:

  • Two platforms, Ku-H and Zaap Delta, were attacked 
  • The pirates were armed
  • There were at least 5 gunmen
  • Oil platforms in Campeche and Tabasco, 12 cargo ships, five fishing boats and ten smaller vessels accounted for 56 robberies in 2022.

More:

  • The Ku Maloob Zaap complex accounts for nearly 40% of PEMEX’s production
  • The field became the Mexico’s primary oil asset in 2009, reaching a production peak of 874.731Mb/d in 2018.
  • By October 2023, production dropped 246Mb/d, reaching 616.2Mb/d. 
  • PEMEX’s overall oil production has fallen by 12.1%, decreasing from 1.81MMb/d in 2018 to 1.59MMb/d in 2023. 

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Our Mexican correspondent Andrew Konczvald reports that the Hidden Gem deep sea mining vessel is no longer in Manzanillo. Vessel tracking data indicate that the ship has relocated to the Port of Long Beach.

News articles are reporting that The Metals Company is conducting studies in the Pacific. These articles erroneously include a file photo of the Hidden Gem, which is not involved with this research. The MV Coco, an impressive research vessel that is pictured below with the obligatory Greenpeace protesters, is conducting the studies.

On a related note, below is an interesting video about last year’s nodule recovery trials using the Hidden Gem’s integrated collection system.

 

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  • Field: Trion
  • Operator: Woodside
  • Partner: Pemex
  • Water depth: 2500 m (Mexico’s first ultra-deepwater project)
  • Distance from US maritime border: 30 km
  • Distance offshore: 180 km
  • Reserves: 324.7 million BOE proved, 478.7 million BOE probable
  • Production: Floating Production Unit with an oil production capacity of 100,000 B/D connected to an FSO vessel with a capacity of 950,000 bbl. Gas not used to power FPU will be reinjected
  • First oil: 2028
  • Only mentioned here 😉: The predicted Rice’s whale habitat extends southward between the 100 and 400 m isobaths into Mexican waters. Background.

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Our Mexican correspondent, Andrew Konczvald, reports that the Hidden Gem, a deepsea mining vessel owned by The Metals Company (TMC) is still parked offshore Manzanillo. The ship has moved a couple of miles and is now near a shipping lane. See Andrew’s pictures below.

Per TMC’s latest update, the earliest that deepsea mining operations could be conducted is late 2025, so the vessel is likely to remain in Manzanillo for Andrew’s viewing pleasure. Nothing like a water view with a rig on the horizon. 😉

Andrew’s viewing location
5X enlargement for a better look at the mining vessel.

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The fire was triggered by an explosion on the Nohoch-A link platform of the company’s Cantarell Field, in the the Bay of Campeche. It then spread to a compression complex, where the two workers lost their lives. More than 300 people were evacuated. The fire is reported to be controlled.

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Andrew Konczvald reports that the Hidden Gem, a deepsea mining vessel owned by The Metals Company (TMC) is still parked offshore Manzanillo. Andrew’s latest picture of the Hidden Gem is pasted below.

TMC is awaiting international deepsea mining regulations, hence the extended and costly downtime for this massive rig. Per TMC, the regulations seem to be progressing.

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Photo courtesy of our Mexican correspondent Andrew Konczvald.

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Relax; just kidding about the California part (or am I? 😉).

BOE’s Mexican correspondent, Andrew Konczvald, took pictures of what looks like a deepwater drillship parked near the beautiful Pacific coast resort town of Manzanillo. Upon further review, our crack investigators determined that the rig is the Hidden Gem, a deepsea mining vessel, owned by The Metals Company (TMC). Last year, TMC conducted a pilot nodule collection program in the Clarion Clipperton Zone between Hawaii and Mexico.

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Per offshore-energy.biz, Russian giant Lukoil has closed a $450 million deal to acquire operator interest in Mexican offshore tracts. Not a good look for Mexico, but in their defense:

  • The deal was closed on 3 February.
  • Many countries, including the US, continue to import Russian oil and gas.
  • Lukoil continues to sell gasoline in the US and worldwide.
  • Unlike some elements of the US government, Mexico appreciates the domestic and international importance of expanding their offshore program.

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Mexico Map

As I understand it:

  1. The Zama field, with estimated reserves of ~700 million barrels, has a common reservoir that underlies Talos Block 7 and a contiguous Pemex block.
  2. Talos drilled the discovery well and 3 delineation wells. Pemex has not drilled a well.
  3. The companies were unable to concur on the terms of a unit agreement.
  4. A third party study for the purpose of initial tract participation, determined that Pemex has a 50.4% share of the reserves. Talos has criticized this study. A previous study had determined that the Talos group has 59.6% of the reserves.
  5. On July 2, 2021, the Mexican Ministry of Energy (SENER) selected Pemex as operator. Talos is disputing that decision.

Thoughts:

  • One of the few energy policy mistakes that the US has not made is the formation of a national oil company. There have been attempts, most notably the 1975 Senate proposal to establish the Federal Oil and Gas Corporation or FOGCO. (I’m not making this up!).
  • When Mexico’s national oil company is one of the competitors, SENER shouldn’t be determining the unit operator. Instead, an arbitration or independent review process should be established.
  • Pemex appears to have been largely a Zama field passenger to date. The discovery well and all delineation wells were drilled by Talos. If the “rule of capture” applied, Talos would be proceeding with development and Pemex would be negotiating with very little leverage.
  • If Mexico wants to discourage foreign investment in their offshore sector, this is a good way to do it.

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