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Mexico's Pemex, Carlos Slim team met to go over deepwater gas project, sources say

Mexican state energy business Pemex and billionaire financier Carlos Slim's team are Discussing ways to revive advancement of the country's deepwater natural gas field that was shelved two times previously, 2 sources told .

The sources, both with direct understanding of the matter, stated executives of companies controlled by the Slim household consulted with Pemex on Tuesday to talk about the Gulf of Mexico gas field. One of the sources stated the parties had accepted reunite.

The Lakach field has actually been hailed as a possible entrance to a. new deepwater Mexican gas frontier. The sources said Pemex. stated it a leading priority to discover a new partner after its last. took out at the end of last year.

Pemex wants to establish the offshore field using a service. agreement where partners financing jobs in advance, a system. used previous to the nation's energy sector opening, among the. sources stated.

It was uncertain whether Pemex and Slim's companies plan to. move forward with the job or whether others would be. involved. The sources stated Pemex had connected to other. companies, too.

Pemex did not immediately react to an ask for remark. A representative for Slim declined to comment.

Slim, whose empire extends from telecoms to mining. to retail, has actually been increasing his participation in the energy. sector considering that in 2015 with stakes in shallow water fields Zama,. Ichalkil and Pokoch.

During a rare public appearance in Mexico City last month,. Slim stated he was interested in being partners with somebody with. experience. He added that he had an interest in increasing his. financial investments in U.S.-based Talos Energy.

The business discovered the Zama oil field in 2017, but. later on lost the rights to operate the possibly lucrative discover. to Pemex, which holds the rights to a nearby area where Zama. most likely extends.

Slim owns stakes in various business that could take part. in the Lakach field, including construction companies FCC and. PERFECT, which one source said participated in the Tuesday conference.

Nevertheless, both sources stated Pemex and Slim would still likely. need another business with deepwater knowledge.

revealed in November that Pemex and U.S. melted. natural gas business New Fortress Energy terminated an offer to. develop the field since the celebrations could not pertain to an. contract on terms consisting of pricing.

President Andres Manuel Lopez Obrador has stated the field. could be key for providing much-needed gas to Mexico and. bringing the nation more detailed to energy self-sufficiency and had. celebrated the offer.

Pemex CEO Octavio Romero said when it was initially revealed. that the collaboration would allow Pemex to fulfill Mexico's. security of supply targets. The companies then said the field. would likely yield production for 10 years or more.

Located some 90 kilometers (56 miles) from the Gulf port of. Veracruz, it holds an estimated 900 billion cubic feet of gas.

Up until now, Pemex has actually invested $1.4 billion on it. Plans to produce. gas there were also shelved in 2016, after it was considered too. pricey.

Authorities from the oil regulator and Pemex have actually also been at. odds over how to establish the Lakach field.

examined five internal evaluations the regulator. carried out between 2015 and 2022. In these, authorities repeatedly. raised questions over whether the it would be financially. feasible and technically possible.

In one file, dated October 2022, officials at the. regulator advised Pemex to send extra info about. what programs will be implemented to mitigate threats and. ensure the success of the project.

They kept in mind an absence of deepwater gas expertise in addition to. missing out on studies of the field and its infrastructure; they likewise. raised concerns over already sunken costs and whether the. project would ever turn a profit offered low gas prices.

In another document, dated the same month, authorities warned. of uncertainty over the volume of gas the field in fact holds,. including conflicting assessments of proven reserves, and that. results of some trials differed what Pemex had actually projected.

(source: Reuters)