Mexico approves Eni’s development plan for Area 1 discoveries

Mexico’s National Hydrocarbon Commission (Comisión Nacional de Hidrocarburos, CNH) has approved Eni’s development plan (PoD) for the discoveries of Amoca, Miztón and Tecoalli off Mexico. 

The discoveries are located in Area 1, in the shallow waters of the Campeche Bay, where Eni is the sole owner and operator with a 100% interest.

Eni said on Wednesday that this achievement occurred just 32 months after the company signed the Area 1 Production Sharing Contract (PSC), won in an international bid round, and 17 months after the drilling of the first well.

Claudio Descalzi, Eni’s CEO, commented: “Area 1 development will be a fast-track project in line with Eni’s strategy aimed at maximizing the long term value for all stakeholders and shareholders.”

According to Eni, Area 1 is estimated to hold 2.1 billion of oil equivalent in place (90% oil) in world-class reservoirs. The development will be phased, initially with an early production phase with startup planned in 1H 2019, through a well head platform located on the Miztón field. Production will be sent onshore through a 10” multiphase line and then treated at an existing Pemex facility. Early production plateau will be 8,000 barrels of oil per day (bopd).

Capex of $1.9 bln

Full field production will start in late 2020 utilizing a floating production, storage and offloading facility (FPSO) with a treatment capacity of 90,000 bopd. Two additional platforms will be installed on the Amoca field and one on the Tecoalli field.

Area 1 production plateau will be 90,000 bopd from 2021. Total development capex are estimated at 1.9 billion dollars.

Eni expects to take the Final Investment Decision (FID) in 4Q 2018, although some initial investments to fund long lead items and to start the construction of the first platform for the early production have already been authorized.