Harbour Energy expects consolidation to continue in Mexican offshore

Harbour Energy, Mexico's largest private oil company in terms of reserves, expects players in the Mexican upstream to join forces to develop the country's offshore oil and gas resources.

"There is going to be a very interesting strategic process here in Mexico," Gustavo Baquero, the company's managing director for Mexico, said on Thursday at an oil and gas conference organized by industry association Amexhi. "A process of consolidation is taking place."

While many major international oil companies have left Mexico, mid-sized players such as UK-based Harbour Energy have increased their presence in the country's offshore. 

In Mexico's promising southeast basin in the Gulf of Mexico, companies will need to work together to develop their discoveries using tiebacks and shared infrastructure, Baquero said.

"There are some discoveries of significant size but there are other discoveries that will need to be connected to infrastructure that is yet to be built."

"Everything is still to be decided. There are companies that are leaving, there are opportunities for those who want to enter... we can't do it alone."

Alongside Harbour and national oil company Pemex, the main players in the basin include Eni, Repsol, Woodside, Houston-based Talos Energy and Carlos Slim's Grupo Carso.

Harbour is currently drilling in the Kan prospect in the southeast basin. It also holds a 32% stake in the large Zama discovery. In Repsol-operated block 29, where two deepwater discoveries have been made, Harbour holds a 25% stake.

Harbour Energy became a major operator in the Mexican upstream following the closure this month of its US$11.2bn acquisition of assets from Wintershall Dea.