Harbour Energy (LSE: HBR) appointed operator of Mexico’s Zama oil project with Pemex and Talos

Harbour Energy plc (LSE: HBR) has been appointed operator of the Zama oil project offshore Mexico, marking a significant milestone in the United Kingdom-based energy company’s expansion across the Gulf of Mexico. The decision, jointly agreed by project partners Petróleos Mexicanos (Pemex), Grupo Carso, and Talos Energy, was subsequently approved by Mexico’s Ministry of Energy (SENER).

The Zama field, which was discovered in 2017 and appraised in 2018 and 2019, is estimated to contain approximately 750 million barrels of oil equivalent (mmboe) of gross recoverable resources. Harbour Energy now leads both Zama and the smaller Kan oil field nearby, further consolidating its position as a key foreign operator in Mexico’s upstream sector. A final investment decision (FID) for Zama is expected in 2026.

Why does operator status at Zama matter strategically for Harbour Energy’s regional ambitions?

Harbour Energy’s new role as operator at Zama is more than a procedural shift. It signals a deeper operational and geopolitical foothold in Latin America’s largest offshore development outside Brazil. By assuming operational leadership, Harbour Energy gains execution control over one of the most anticipated shallow-water oil projects in the hemisphere. That control is critical given Zama’s expected multibillion-dollar capital expenditure profile, multi-phase development plan, and associated infrastructure alignment with Mexico’s broader energy policy goals.

The appointment also marks a rare instance where a foreign private operator has been handed the reins over a Mexican offshore asset in which Pemex retains a majority stake. Pemex’s decision to defer operatorship, despite holding 50.4 percent of the project, reflects not only execution risk mitigation but also tacit endorsement of Harbour Energy’s track record and alignment with national production imperatives.

For Harbour Energy, the Zama operatorship is not only a reputational win but a strategic anchor for long-term capital deployment. This appointment positions Harbour Energy to optimize development sequencing across its dual-Mexico portfolio, Zama and Kan, while building continuity into a broader Gulf of Mexico strategy that includes the recently announced acquisition of LLOG Exploration Company in the United States.

What are the implications of partner alignment, especially with Pemex and Talos Energy?

Zama’s governance has been historically complex. The original discovery was made by Talos Energy in 2017 in Block 7, while Pemex subsequently asserted overlapping claims via its adjoining lease. The final unitization agreement, concluded in 2022, allocated 50.4 percent to Pemex, 17.35 percent to Talos Energy Mexico, and 32.22 percent to Harbour Energy. The latest decision to designate Harbour Energy as operator suggests that operational merit has trumped political sensitivities, at least for the current phase of development.

Importantly, Talos Energy and Grupo Carso will retain rights to appoint key personnel to Harbour Energy’s project team. This provision is designed to ensure institutional continuity and collaborative oversight. Pemex’s willingness to cede operational control further underscores the Mexican government’s interest in accelerating production timelines and leveraging private sector efficiency to support national energy security.

Talos Energy, once vocal about its discovery rights and operatorship claims, appears to have accepted the Harbour Energy-led structure as the most viable path to commercialisation. That shift reflects growing realism around execution complexity and the value of scale that Harbour Energy can bring to the table.

How does Zama fit into Harbour Energy’s broader portfolio and capital allocation thesis?

Zama is now one of Harbour Energy’s three anchor offshore oil assets alongside the Kan project in Mexico and the broader LLOG acquisition portfolio in the United States. Harbour Energy holds a 32.22 percent operated interest in Zama and a 70 percent interest in Kan, with TotalEnergies holding the remaining 30 percent. Together, Zama and Kan represent over 900 mmboe of gross recoverable resources.

With the addition of LLOG’s assets, Harbour Energy is transitioning from a largely UK North Sea-focused player to a diversified Gulf of Mexico producer with operational control over multiple growth engines. This shift improves visibility on medium-term cash flow growth, especially as North Sea tax regimes tighten and decline rates erode legacy production.

By concentrating its offshore bets in a geographically contiguous zone, Harbour Energy also gains logistical efficiency, operational learning transfer, and procurement leverage. These efficiencies are important for cost control as the global offshore supply chain tightens and project inflation resurfaces in the 2026–2028 capital expenditure cycle.

What execution risks remain in the Zama development timeline?

Despite the positive optics, Zama is not without risk. The next 12–18 months will involve front-end engineering and design (FEED), reservoir modelling updates, environmental permitting, and alignment on infrastructure build-out. Given the size and complexity of the reservoir, which is spread across multiple compartments and geologies, reservoir management strategy will be pivotal in first-phase recovery planning.

The involvement of multiple partners, including a state-owned enterprise, adds layers of governance that may slow decision-making. Capital allocation discipline will also be tested if oil prices soften or if service cost inflation escalates before final investment decision.

Any misalignment on offtake infrastructure, pipeline access, or fiscal terms could create bottlenecks. While Harbour Energy has previously demonstrated project delivery capabilities, this will be its first major development as operator in Mexico. The role brings both opportunity and scrutiny.

How is the market likely to view Harbour Energy’s expanding role in Mexico and the U.S. Gulf?

Investor sentiment toward Harbour Energy has been shaped by volatility in UK tax policy, which prompted the company to seek geographic diversification. The Zama operatorship, in conjunction with the LLOG Exploration acquisition, provides a credible response. It offers both growth optionality and jurisdictional hedging.

Analysts are likely to see this development as de-risking Harbour Energy’s medium-term production outlook, especially if early-stage engineering signals disciplined cost estimates and achievable ramp-up targets. However, the full impact on valuation will hinge on how Harbour Energy finances its capital commitments and whether the company can translate operatorship into faster cycle times and higher netbacks.

Moreover, Mexico’s regulatory stability remains a point of investor caution. While President Andrés Manuel López Obrador has shown increasing openness to private collaboration in execution, future administrations may revisit contractual frameworks, particularly if oil production becomes politically salient.

What happens next for Harbour Energy, Pemex, and the Zama partners?

Harbour Energy is expected to complete front-end engineering design in 2026, with a final investment decision possibly by late 2026 or early 2027. First oil could be targeted within 3–4 years post-FID, depending on procurement lead times and regulatory approvals.

Pemex, while relinquishing operatorship, will retain commercial influence as the majority partner. Its strategic interest in bolstering national production and shoring up fiscal revenues aligns with timely Zama development, but execution priorities may still differ from those of Harbour Energy and Talos Energy.

Talos Energy and Grupo Carso are now in a support role but will likely push for timely milestone achievement to preserve capital efficiency and strategic optionality. Investors in all three companies will be closely watching 2026 engineering milestones for signals on project viability, reservoir understanding, and capital efficiency.

If Harbour Energy successfully delivers Zama and integrates its U.S. Gulf assets, the company could emerge as a mid-cap leader in the offshore oil renaissance. This is a sector that many had previously written off as stranded or structurally declining.

What does Harbour Energy’s Zama operatorship mean for its Gulf strategy and Mexico’s energy outlook?

• Harbour Energy has been appointed operator of the Zama oil project offshore Mexico, partnering with Pemex, Talos Energy, and Grupo Carso.

• The project is estimated to hold 750 million barrels of oil equivalent in gross recoverable resources, with final investment decision targeted in 2026.

• Pemex’s decision to cede operatorship to Harbour Energy signals increased trust in private execution capacity and urgency to boost domestic oil output.

• Harbour Energy now controls two Mexican oil projects—Zama and Kan—and is expanding its U.S. Gulf of Mexico footprint via its acquisition of LLOG Exploration.

• Zama’s complexity and multi-party structure present execution and governance risks, particularly around engineering alignment and infrastructure build-out.

• The move supports Harbour Energy’s geographic diversification away from the UK North Sea amid fiscal tightening and production declines.

• Investor sentiment could improve if early-stage execution milestones are met and Harbour Energy demonstrates disciplined capital deployment.

• Harbour Energy’s leadership in Zama may redefine its identity as a Gulf-focused offshore oil producer rather than a UK-centric legacy player.