Unitization talks between a Talos Energy Inc.-led consortium and Mexican national oil company Petróleos Mexicanos (Pemex) to jointly develop the Zama offshore oil discovery have progressed from the technical phase to more commercial discussions, according to Talos CEO Timothy Duncan.


Assuming unitization is completed “on a timely basis,” Talos expects to reach a final investment decision or FID for the shallow water, oil-rich block by end of 2021, Duncan said during a fourth quarter earnings conference call for Houston-based Talos. 

Zama was discovered by Talos and its partners in 2017 through an exploration well drilled at offshore Block 7, which was awarded to the consortium in Mexico’s Round 1.2 bidding process in 2015.

Talos is the operator of Block 7 with a 35%...