Eni announced that Mexico’s National Hydrocarbon Commission (Comisión Nacional de Hidrocarburos, CNH) approved the Development Plan (PoD) for the discoveries of Amoca, Miztón and Tecoalli, located in Area 1 , in the shallow waters of the Campeche Bay.
Italy's oil major said it 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 authorised.
Area 1 is estimated to hold 2.1 billion of oil equivalent in place (90 per cent 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).
Claudio Descalzi, Eni’s CEO, said: “I am extremely satisfied for this result, achieved thanks to a close and proactive cooperation between Eni and the Mexican authorities, and 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’s strategy aimed at maximising the long term value for all stakeholders and shareholders”.
Full field production will start in late 2020 utilising 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.
Currently Eni holds rights in six exploration and production blocks in the Sureste Basin, all as the Operator: Area 1 (Eni 100 per cent), Area 7 (Eni 45 per cent), Area 10 (Eni 100 per cent), Area 14 (Eni 60 per cent), Area 24 (Eni 65 per cent) and Area 28 (Eni 75 per cent). Eni plans to drill two exploration wells in 2019 in the new blocks recently awarded.