Talos Energy Inc. has let a concept and engineering services contract to McDermott International Inc. for a development project in Zama field—the first offshore Mexico block awarded to a private operator (OGJ Online, Sept. 18, 2018). The contract award is for engineering services, including concept selection and follow-on pre-FEED.
McDermott will execute the contract award with IO Oil & Gas Consulting, a joint venture of McDermott and Baker Hughes. McDermott will manage all phases of the engineering services process and will workshare engineers and designers in Mexico City and will receive support from IO and input from the customer. Based on the final concept solution from IO, McDermott will provide the follow-on pre-FEED services for development. Work on the concept selection has begun and is expected to be complete in third quarter 2019.
Discovered in July 2017, Zama field lies on Block 7 in the Sureste basin offshore in the Mexican Gulf of Mexico in 540 ft of water. Zama-1 was the first exploration well drilled offshore Mexico by a private sector operator. Talos estimates the field has 400-800 million recoverable boe, with an estimated peak production of 150 million boe/d. Appraisal activities are planned later this year with two additional wells. Start of production is expected by 2022.
Block 7 interests are held by operator Talos 35%, Sierra Oil & Gas 40%, and Premier Oil PLC 25%.
