| VIEW FROM THE TOP
DISCOVERY SETS STAGE FOR FURTHER PROJECT ADVANCES GABRIEL GÓMEZ Country Manager Mexico of Murphy Oil Corporation
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Q: How have the consortium’s activities on Block 5
announced by the new administration. Despite having four
developed, following its oil and gas discovery in the
years from the approval of our Exploration Plan in May 2018
Cholula-1 well?
to drill our commitment well, Murphy drilled the Cholula
A: Murphy is very excited about our discovery. Not only is
well within the first two years of signing the contract. We
this the company’s first exploration well in Mexico but it is
have put a great amount of effort into our Mexican block.
also one of the first deepwater wells to be drilled by IOCs
At Murphy, we are very proud of our execution capabilities
following the Energy Reform. While we are still evaluating
and have the track record to prove it. Therefore, we hope
the results, this discovery has de-risked the block and will
to reach production as quickly as possible.
lay the foundations for our future plans there. The seismic data we acquired has allowed us to perform an overall
Q: What challenges does Mexican infrastructure face
assessment of the block. We have identified upwards of 30
ahead of production in the Gulf of Mexico?
prospects and, with our Cholula-1 well proving the existence
A: There is a considerable infrastructure gap between the
of a working hydrocarbons system, we are positive about
Mexican and US sections of the Gulf of Mexico. While a
the area’s overall potential. The drilling of the block’s
discovery like Cholula would be very easily put on-stream
Miocene amplitude play has de-risked a number of nearby
in the US Gulf through a tie-back, this is not possible on
prospects with similar characteristics.
the Mexican side. Murphy will be evaluating infrastructure around its block and will consider developing a greenfield
Q: How has the relationship between the consortium
facility by itself. If we have significant reserves and
partners evolved as developments on Block 5 have
production to transport, an ideal scenario would be
progressed?
to bring in an FPSO to deliver the product directly to
A: We have had a good relationship with our partners. This
the market.
means the consortium has a collective view on how we pursue opportunities. We are delighted that our partners
Q: How has the arrival of the AMLO administration
are also pleased with our work and we are all happy to
impacted Murphy’s activities in Mexico?
see that our drilling has gone smoothly, efficiently and,
A: President López Obrador has stated clearly that he
most importantly, safely. Toward the end of 2018, our
intends to respect contracts that have already been
partner Ophir announced its intent to exit Mexico as part
signed. Additionally, the president’s push for increased
of a strategic shift and this included selling its interest in
production has been positive for private players because
Block 5. In May 2019, we entered an agreement whereby
it has put a focus on shortening approval periods and
the remaining partners will acquire Ophir’s interest. This is
reducing the regulatory burden. This benefited Murphy
evidence of our commitment to the country.
during its preparation for the Cholula prospect as the regulatory bodies made an effort to ensure permits and
Q: How will Murphy participate in the federal
approvals arrived on time. This change has also reflected
administration’s production target of 2.6MMb/d by 2024?
in the updated exploration and development plan
A: Murphy intends to pursue its project in Mexico. Our
guidelines issued by CNH in April 2019, adding flexibility
own targets are in line with the increased production push
and shortening approval times for plans.
Murphy Oil Corporation is an oil and natural gas exploration
is unfortunate and we believe that clarity on future
and
includes
opportunities would be beneficial for the industry. It
production from the US Gulf of Mexico, Canada and
takes significant time and technical work to prepare for
Southeast Asia
the bidding rounds so the government must consider this.
The suspension of bidding rounds and PEMEX's farmouts
production
company.
Its
resource
base
