Northcote inks oilfield waste treatment agreement with Pemex

Northcote Energy news
Northcote Energy news

A subsidiary of Northcote Energy (LON: NCT) has signed a preliminary agreement with Pemex to carry out waste treatment services for the Mexican-state owned oil company.

Mayan Drilling Fluids (MDF) will use its soon-to-be commissioned treatment facility in Comalcalco, Mexico, to recycle oil cuttings from fields operated by Pemex, if a binding agreement is reached.

MDF is a joint venture between Northcote, which holds 51% of the enterprise, and its Mexican partner Gaia Ecologica.

The pact with Pemex forms part of Northcote’s strategy of capitalising on Mexico’s 2014 energy reform programme.

The programme amended Mexico’s constitution to permit private investment in the oil sector for the first time since 1938, when then-president Lazaro Cardenas nationalised the industry.

It has been lauded as the biggest economic breakthrough for Mexico in the last two decades.

Northcote chairman Ross Warner said: “We have always said that the opening up of Mexico’s oil and gas sector represents a once in a generation opportunity to companies operating in that sector.

“Today’s LOI (letter of intent) with Pemex demonstrates that Northcote is becoming increasingly well positioned to take advantage of some of those potential opportunities.”

Northcote, which has offices in Dallas and London, has a portfolio of US exploration and production assets in Louisiana and Oklahoma.