US oil and gas company Talos Energy has set a date for the start of appraisal drilling at its giant Zama discovery offshore Mexico. Brazilians who sent resumes to Ensco last week, stay tuned!
The Zama-1 discovery, made in July 2017, was the first offshore exploration well drilled by the private sector in Mexico's history and oil from the Zama field is expected to be between 1,4 and 2,0 billion barrels of oil equivalent. In an update released on Monday, the company said that following the recent appraisal plan approval, the company expected to drill the first appraisal well – Zama-2 – in late November 2018.
The company previously said it would use the same drilling rig it used when it found Zama – the Ensco 8503. According to Marine Traffic, the rig has yet to arrive in Mexico, as AIS shows it is located off the coast of Louisiana. US Gulf of Mexico. Talos estimates that the appraisal drilling program, which includes three new penetrations in the reservoir, will be completed by mid-2019.
The first well in the program, Zama-2, will be deepened by approximately 500 meters to test an exploration prospect called Marte. The estimated cost to deepen the Zama-2 well for the Mars test is approximately $10,0 million gross, with Talos participation expected to be approximately $3,5 million.
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Talos expects its net cost share to be approximately $75,0 million to $80,0 million for the entire evaluation campaign. Talos previously said he expects to announce the final investment decision for the Zama development project in 4Q 2019 or 1Q 2020, with first oil expected in 2022. Production would be ramped up through 2024, with additional facilities being installed at the field.
Talos said the Zama discovery could contribute nearly 10% of Mexico's oil production by 2024. The plan is to develop Zama with three production platforms across the structure. The field will continue to be developed until 2024, when Platform C is expected to be installed.
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