Hokchi Energy, one of Mexico's leading private crude oil and gas producers, has initiated a dispute resolution process against the state-run company PEMEX to recover approximately US$190 million owed by the financially burdened NOC. This action follows prior notifications and warnings sent by Hokchi to PEMEX. The process, which was initiated in mid-September, serves as an initial step preceding potential legal actions. The outstanding amount of US$190 million is considered as of September 12.
In July, Hokchi Energy's production figures stood at 22.302Mb/d of oil and 8.876MMcf/d of gas, as reported by the CNH. Hokchi primarily operates the Hokchi block, where it holds a 55% ownership stake, located in the shallow waters of the Gulf of Mexico. According to CNH data, at the beginning of the year, the Hokchi field boasted proven reserves of 111MMb of crude oil.
Hokchi, the second-largest private producer of crude oil and gas in Mexico, delivers its entire hydrocarbon production to PEMEX. In addition to Hokchi Energy’s commercial activities, its commitment to Mexico’s energy sufficiency also extends to social activities. Hokchi Energy participates in Access to a Dignified Life, a social program to help grant access to equal opportunities to children in Tabasco’s communities.
So far, the Ministry of Finance, Hokchi and PEMEX have declined to make any comments regarding the dispute resolution process.
Recently, CNH approved Hokchi Energy’s work plan and budget for 2023. The plan includes the development of the contract CNH-R01-L02-A2/2015 at the Hokchi field, in shallow water near the coast of Tabasco. Here, the company set out to extract 26° API crude oil.
The plan includes the drilling of three wells and the termination of another four, plus three minor repairs. Hokchi expects to retrieve 10.86MMb of crude and 3.91Bcf of gas. The budget approved for the Hokchi field is US$198.33 million, of which 51.1% will be for development, 45.06% for production and the rest for abandonment. In November, Hokchi modified its drilling plans and modified its production forecast, from 9.38MMb to 8.43MMb and from 2.93 to 3.33Bcf of natural gas. The company’s budget plan for 2022 previously stood at US$229 million and included exploration plans in Xaxamani.