Why Harbour Energy Shares Fell 7.5% on Mexican Project Update

The Harbour Energy PLC (LON: HBR) share price fell 7.54% after revealing that it and other Zama Unit Holders, Wintershall Dea, Petroleos Mexicanos (Pemex), and Talos Energy, are pleased to announce that Pemex, as the operator, has submitted the Unit Development Plan (UDP) for the Zama field to Mexico’s National Commission for Hydrocarbons (CNH) for approval.

The Zama UDP outlines two offshore shallow water platforms and 46 production and water injection wells. The oil and gas produced will be transported via pipeline to the new Terminal Maritima Dos Bocas facilities.

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The UDP intends to minimise the production of greenhouse gases by using the best technologies available. The gas produced by the company will be used for onshore power generation, and it will leverage the existing storage and transport infrastructure. 

The Zama stakeholders will continue with the front-end engineering (FEED), and other engineering and planning works as they await the CNH’s approval. The partners will also receive new cost and schedule estimates for the project. The partners will then make the final investment decision after completing the FEED. 

The Zama Unit partners have also decided to form an Integrated Project Team (IPT) to manage the delivery of the field development. The IPT will provide operational, technical, and execution expertise drawing on the skills and talents of all partners.  The IPT’s shared goal is the safe and efficient delivery of the first production from the Zama field. 

On another note, the Block 7 partners and Pemex agreed on the principal terms regarding hydrocarbon sales and the use of the Terminal Maritima Dos Bocas (TMDB) facilities based on energy market indices and standard industry terms and conditions. 

Stuart Wheaton, Harbour Energy’s EVP of International Business, commented: “We are delighted with the collaboration between our partners, which has enabled us to submit the Unit Development Plan for the Zama field on schedule. This marks an important milestone towards delivering safe and efficient first oil from the Zama field, which once onstream will contribute significantly to both Harbour’s production and Mexico’s domestic energy supply.”

*This is not investment advice. 

The Harbour Energy (HBR) share price. 

The Harbour Energy share price fell 7.54% to trade at 243.30p, from Thursday’s closing price of 263.15p.