CNH approves Eni plans in Mexico

MEXICO CITY, August 1, 2018 – Mexico’s National Hydrocarbons Commission (CNH) has given the green light for Eni’s USD 7.49-billion development plan for Contract Area 1, international media reported on Tuesday.

Covering the Amoca, Tecoalli and Miztón fields, the scheme is the most extensive to receive approval under Mexico’s energy reform. In total, 36 wells will be drilled, including four for exploration, 22 for development and 10 for water injection.

In the block’s early production phase, which tagrets 8,000 bopd by Q1 2019, Eni will use Pemex’s San Ramón battery. The second stage of development will see an FPSO and four wellhead platforms installed in the block, adding a further 90,000 bopd from Amoca and Mitzón by Q4 2020, with Tecoalli output incorporated by 2024.

Eni estimates that it can obtain around 346 million barrels of crude and 6.29 tcm (222 tcf) of gas from Contract Area 1 by 2038.

The CNH awarded the licence to Eni in October 2015’s Round 1.2. The Italian super-major made a discovery at Amoca in March 2017, and raised block resource estimates to 2 billion boe last December.

Read our latest insights on: