Murphy Sur Begins Early Termination for Oil Block in Salina Basin

Murphy Sur has requested CNH to initiate the procedure for early termination by partial return and resignation of portions of an offshore oil block, which was assigned to the company during rounds conducted in the previous administration. Murphy Sur and its partners, PC Carigali and Sierra Offshore Exploration, join other companies that have relinquished and partially or entirely returned contractual areas in their exploration phase, either due to a lack of commercial viability or as a strategic business decision.

The early resignation pertains to contractual area 5 in the Salina Basin, off the coast of Tabasco, covering an area of 2,573km2. The contract commenced on March 10, 2017, under a license modality with a duration of 35 years. CNH has instructed the beginning of the procedure for early determination by returning a portion of the contractual area and resigning from two other portions associated with the contract.

In September, as reported by MBN, CNH granted approval for Chevron and Repsol to proceed with their requests to relinquish a deepwater and a shallow-water block, respectively. The companies cited a low probability of these blocks being economically viable for production as the reason for their decision.

Chevron opted to abandon a deepwater block located off the Tabasco coast, citing unfavorable prospects for the block. The company, in partnership with PEMEX and Inpex, conveyed to CNH their assessment of the block's limited potential. Simultaneously, Repsol also divested assets by choosing to relinquish a shallow-water block. A spokesperson for Repsol indicated that, despite this move, the company still maintains ownership of a deepwater block in the Gulf of Mexico. Both Chevron and Repsol intend to uphold a presence in Mexico, with Chevron maintaining an office in the country.

In contrast to the series of resignations, some companies have already submitted their work programs and budgets for 2024 to CNH. So far, the commission has approved 24 of these programs, including 14 for exploration, 6 for extraction, and 4 for evaluation, which, according to Agustín Díaz Lastra, President, CNH, is considered a positive development.

The anticipated investment for these programs is expected to reach up to US$2.96 billion in 2024, a figure that will likely increase as three more programs are yet to be approved. CNH also clarified that the relinquishment of blocks is a foreseeable trend as companies prioritize investment in more promising areas. Nevertheless, with the discontinuation of bidding rounds, there are currently no new blocks designated for exploration. 

Experts note that, given the financial challenges confronted by PEMEX, sustaining efficient exploration efforts has become exceptionally challenging.

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