Mexico drillers sign first farm-out deal without state oil giant

Two upstart Mexican drillers have signed the first farm-out deal in Mexico’s oil sector that doesn’t include state company Pemex.

Jaguar Exploracion y Produccion agreed to sell a 50 percent stake of three onshore areas in Tabasco and Veracruz to Vista Oil & Gas for $37.5 million, plus contingency payments if oil prices rise above $65 a barrel in the next two years. Vista, Mexico’s first listed crude producer following a $650 million share sale last year, will pay and operate two of the areas that are already in production.

Source: Bloomberg