Pemex Considers Private Operator for Giant Zama Oil Field Amid Financial Crisis

Petróleos Mexicanos (Pemex) has entered talks to transfer operatorship of the giant Zama offshore oil field to private sector partners.

This potential shift marks a significant change in Mexico’s energy policy under President Claudia Sheinbaum’s administration, which shows greater openness to private sector involvement.

The Zama field represents one of the world’s largest shallow-water discoveries in the last two decades. Discovered in 2017, it holds estimated resources of 600 to 800 million barrels of oil equivalent.

Pemex currently operates the field with a 50.43% stake, while partners Wintershall Dea, Talos Energy, and Harbour Energy hold the remaining shares.

Production at Zama faces significant delays amid Pemex‘s mounting financial troubles. Initial plans targeted first oil by December 2025, but current projections push this timeline to at least 2028.

The state oil company slashed its 2025 development budget for Zama to $370.8 million, down 64% from the original $1.05 billion allocation. Pemex awarded French engineering company DORIS the front-end engineering and design contract in June 2024.

The development includes two offshore platforms, 68 kilometers of pipelines, and a new onshore facility at the Dos Bocas Maritime Terminal. The company’s financial situation continues to deteriorate with alarming speed.

Pemex’s Financial Struggles

Pemex reported a $9.31 billion loss in the fourth quarter of 2024 alone. Its total debt approaches $100 billion, with supplier debt reaching $24.2 billion by December 2024.

President Sheinbaum promised to settle all supplier debts by March 2025, with initial payments beginning in December 2024. The Mexican government extended $6.7 billion to cover part of Pemex’s debt obligations for 2025.

Talos Energy, which made the original Zama discovery before Pemex took over as operator, has voiced frustration over the project’s slow progress.

“We have Mexico, a great discovery in Zama, we’re seven years into it, and still have not made a final investment decision,” said Talos Energy interim CEO Joseph Mills recently.

The field holds strategic importance for Mexico’s energy future. At peak production, Zama could yield 180,000 barrels of oil per day, representing approximately 10% of Mexico’s current production.

This output could significantly advance Sheinbaum’s goal of increasing Pemex production. The target is to reach 1.8 million barrels daily over the next six years.