(OE) After Mexico’s Pemex said Sunday it had signed a deal with the U.S. firm New Fortress Energy (NFE) to develop the Lakach deepwater gas/condensate field, the confirmation also came from NFE, which shared more info on the development plan.
The agreement involves the joint development of the Lakach deepwater natural gas field for Pemex to supply natural gas to Mexico’s onshore domestic market and for NFE to produce LNG for export to global markets. The field, sitting at a water depth of a thousand meters, is located off the coast of Veracruz.
Under the strategic alliance signed with Pemex, NFE will invest in the continued development of the Lakach field over a two-year period by completing seven offshore wells. In addition, NFE will deploy to the Lakach field a 1.4 MTPA FLNG unit to liquefy the majority of the produced natural gas.
The remaining natural gas and associated condensate volumes would be used by Pemex in Mexico’s onshore domestic market.
“NFE and Pemex believe the Lakach field will yield approximately ten years of production, with the possibility of significantly extending the reserve life if nearby fields are developed,” NFE said.
“We are honored to enter into this important strategic partnership that strengthens NFE’s commitment to long-term operations in Mexico and demonstrates the tremendous value of our integrated natural gas infrastructure business model,” said Wes Edens, Chairman and CEO of NFE. “This is the first of a number of offshore development opportunities that leverage what we think is an ideal formula for offshore gas assets around the world – one that combines gas for domestic use with gas for export. We appreciate the continued support of President López Obrador, admire his resolve to deliver reliable energy to the people of Mexico, and value the opportunity to partner with Pemex to enhance global energy security.”
Pemex discovered the Lakach deepwater natural gas field in 2007 and subsequently carried out significant exploration and development activities. Lakach is one of the largest non-associated gas fields in the Gulf of Mexico with total original gas in place of 1.1 trillion cubic feet (“Tcf”) and is located approximately 70 kilometers off the coast of Veracruz in southeastern Mexico. Coupled with nearby undeveloped fields Kunah and Piklis, the area has a total resource potential of 3.3 Tcf and comprises one of the most significant undeveloped offshore gas resources in the Western hemisphere, NFE said.
New Fortress Energy is known to Offshore Engineer’s readers for its recent purchases of offshore drilling rigs aimed for conversion to LNG-production facilities. Read More Here.
In its quarterly update in May, New Fortress Energy said it had acquired three jack-up rigs, two Sevan floating rigs, and had three fixed platforms under development, on which gas liquefier modules will be installed. It’s not clear yet if any of these solutions would be deployed at Lakach.