Global law firm Hogan Lovells has advised Wintershall Dea on its agreement with Hokchi Energy, the Mexican subsidiary of Pan American Energy, to acquire a 37% participating interest in the Hokchi oil and gas block, with a conditional option to increase its participation up to 40% at a later stage.

Wintershall Dea is a leading European independent oil and gas company with more than 120 years of experience along the entire E&P value chain. The company has operated in Mexico since 2017 and this transaction further expands Wintershall Dea’s presence in Mexico, consolidating its position as one of the leading independent gas and oil companies in the country. As a result of this transaction, Wintershall Dea will become the second-largest interest holder in the Hokchi Block, after operator Hokchi Energy.

The Hokchi Block is a key contributor to the total production led by private companies in Mexico. It currently produces around 26,000 barrels of oil equivalent per day with a planned ramp-up to a gross production of 37,000 barrels of oil equivalent per day by 2023.

The transaction is subject to obtaining government approvals and is expected to complete before the end of the first quarter 2023.

The Hogan Lovells team advising Wintershall Dea included partner Carlos Ramos, who led on Mexican law and regulatory matters together with senior associate Perla Diaz; partner Ben Sulaiman, who led on oil and gas-related matters; and partner Florian Agnel who led on M&A together with senior associate Beth Addy.

Partner Florian Agnel commented:  “We’re delighted to have worked with Wintershall Dea on this important transaction, and demonstrated our team’s strong international collaboration and local Mexican oil and gas expertise.”