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TALO - Talos Energy Inc News Story

$12.55 0.3  2.1%

Last Trade - 07/05/21

Market Cap £723.2m
Enterprise Value £1.45bn
Revenue £423.1m
Position in Universe 2853rd / 6854

Talos still in talks with Mexico's Pemex despite missed deadline

Fri 26th March, 2021 7:31pm
MEXICO CITY, March 26 (Reuters) - Talks between Mexico's
state-owned Pemex and Talos Energy about developing a major
offshore oil deposit are continuing, the U.S. company said on
Friday, although the two sides missed this week's deadline to
reach a deal on key details of the project.
    The nearly 700 million barrel Zama discovery made by a
Talos-led consortium in 2017 extends into Pemex's neighboring
block in the southern Gulf of Mexico.
    The two sides have been negotiating a deal to jointly
operate the area, known as a unitization agreement.
    "As we transition into this new phase in the process, we
look forward to continuing to engage constructively with both
(Mexico's energy ministry) and Pemex and we are confident we can
achieve a positive outcome for all parties," Talos Chief
Executive Tim Duncan said in the statement.
    He said "significant progress" had been made and "a common
understanding has been largely achieved," without giving
details.
    The two sides failed to meet this Thursday's deadline to
submit an operating agreement, under which the two sides agree
on one company to run operations, among other technical
decisions. No deal has been reached on details, such as the
preliminary split of Zama's oil riches.
    Reuters reported this week that talks between the two
companies would be extended past the deadline and that Pemex was
open to Talos operating Zama provided it met certain conditions.
 urn:newsml:reuters.com:*:nL1N2LN3U0  urn:newsml:reuters.com:*:nL1N2LG3GB
    Talos said the energy ministry was now required to propose
its own unitization deal. Industry analysts said the did not
expect Mexico to do this quickly as the two sides were still
negotiating.
    

 (Reporting by David Alire Garcia; Editing by Edmund Blair)
 ((david.aliregarcia@thomsonreuters.com; +52 55 5282 7151;
Reuters Messaging:
david.aliregarcia.thomsonreuters.com@reuters.net))
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