New Fortress Energy (NFE) has signed agreements with Mexico’s state-owned oil company Petróleos Mexicanos (Pemex) to complete the development of the liquefaction project associated with the Lakach gas field offshore Mexico.

The agreements include a long-term strategic partnership to complete the development of the Lakach gas field in the Gulf of Mexico.

Over a two-year period, New Fortress will complete seven offshore wells at the Lakach field.

NFE will also deploy a 1.4 million tonnes per annum (Mtpa) Sevan Driller floating liquefied natural gas (FLNG) unit at the Lakach field to liquefy the majority of the natural gas production.

Under the agreements, NFE will also provide upstream services to Pemex . NFE will provide natural gas and condensate to Pemex in exchange for a fee for every production unit delivered.

In a press statement, New Fortress Energy said: “The fee is based on a contractual formula that resembles industry-standard gross profit-sharing agreements between the upstream service provider (NFE) and the owner of the hydrocarbons (Pemex).

“NFE will produce natural gas in the Lakach field and will have the right to purchase, at a contracted rate, sufficient volumes for its FLNG unit while Pemex will sell the remaining natural gas volumes and all of the produced condensate to its customers onshore.”

Following its discovery in 2007, the Lakach gas field was subject to significant exploration and development activities by Pemex.

Despite this, Pemex suspended further development of the field due to a decline oil prices in 2014.

Mexican President López Obrador has said that the Lakach field completion is a ‘matter of national interest’.

Pemex CEO Octavio Romero Oropeza said: “We believe this partnership will enable Pemex to efficiently leverage our domestic natural gas resources, fulfill Mexico’s security of supply targets, and facilitate gas-fired power infrastructure development in the region.”

The area round the Lakach field, together with nearby fields, is estimated to hold a total resource potential of 3.3 trillion cubic feet.