Eni announced it will drill four wells offshore Mexico following approval from the Mexican authorities.

Eni gets government approval to develop in offshore Mexico

MEXICO CITY, December 1, 2015 – Eni announced it will drill four wells offshore Mexico following approval from the Mexican authorities.

Mexico opened its state-operated oil and gas industry in June amid efforts to ramp up production and renew the country’s ageing facilities.

The Italian company will drill in three oilfields that it had won in an auction on October 1. The combined volume for the three fields is around 800 million barrels of oil and 480 bcm (16.9 tcf) of associated gas.

Eni is working on establishing its Mexican subsidiary, Eni Mexico, to begin an appraisal campaign of the fields. Area 1 on Campeche Bay was the subject of high competition during the rounds due to its prospects and required government approval.

Eni has a 100-percent share in the shallow water fields in Area 1 and will launch a fast-track development plan.

Oil production in Mexico has been declining since 2006, when it was the world’s seventh largest with 3.71 million barrels per day, to 2.3 million barrels in July 2015

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