Mexico鈥檚 National Hydrocarbon Commission, CNH, approved Italy-based multinational energy company Eni's development plan for Area 1 discoveries offshore Mexico, Eni announced Wednesday.
The development plan includes discoveries of Amoca, Mizton and Tecoalli, located in Area 1, in which Eni has a 100 percent share, according to the company's press release.
The approval came just 32 months after Eni signed the Area 1 Production Sharing Contract (PSC), which was won in an international bid round, and 17 months after the drilling of the first well, the company detailed.
According to Eni's announcement, Area 1 is estimated to hold 2.1 billion barrels of oil equivalent in place, comprising 90 percent oil, in world-class reservoirs.
鈥淭he result was achieved thanks to a close and proactive cooperation between Eni and the Mexican authorities. We are also proud that Eni will contribute to the innovation and progress of the country in a sustainable and positive manner for the society. Area 1 development will be a fast-track project in line with Eni鈥檚 strategy aimed at maximizing the long-term value for all stakeholders and shareholders,鈥� Eni's CEO Claudio Descalzi said in the press release.
The development will be phased, initially with an early production phase with startup planned in the first half of 2019, through a Well Head Platform located on the Mizton field.
Production will be sent onshore through a 10-inche multiphase line and then treated at an existing Pemex facility. Early production plateau will be 8,000 barrels of oil per day (bopd).
Full field production will start in late 2020 utilizing a Floating Production, Storage and Offloading facility 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 capital expenditure is estimated at $1.9 billion, according to the press release.
Eni expects to take the Final Investment Decision in the fourth quarter of 2018, although some initial investments to fund long lead items and to start the construction of the first platform for early production have already been authorized, the press release said.
Eni has been present in Mexico since 2006 and in 2015 established its wholly-owned subsidiary, Eni Mexico S. de R. L. de C. V.
Currently, Eni holds rights in six exploration and production blocks in the Sureste Basin, all as the operator: Area 1 with 100 percent, Area 7 with 45 percent, Area 10 with 100 percent, Area 14 with 60 percent, Area 24 with 65 percent and Area 28 with 75 percent.
Eni plans to drill two exploration wells in 2019 in the new recently awarded blocks.
By Muhsin Baris Tiryakioglu
Anadolu Agency
energy@aa.com.tr