Eni secures development plan approval for Area 1 discoveries offshore Mexico

Italy’s Eni has secured approval from the Mexico’s National Hydrocarbon Commission, Comisión Nacional de Hidrocarburos (CNH) for the $1.9bn development plan of the Area 1 discoveries offshore Mexico.

The discoveries include Amoca, Miztón and Tecoalli located in Area 1, in the shallow waters of the Campeche Bay.

The approval comes 32 months after Eni signed the Area 1 Production Sharing Contract (PSC) following a bidding round.

Eni CEO Claudio Descalzi said he is “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 maximizing the long term value for all stakeholders and shareholders.”

According to estimates, Area 1 holds 2.1 billion of oil equivalent in place (90% oil) in reservoirs. It is expected to have production plateau of 90,000 bopd from 2021.

The phased development plan will initially include an early production phase through a well head platform located on the Miztón field, with startup scheduled in the first half of 2019.

Production from the field will be supplied through a 10inch multiphase line to onshore and then be treated at an existing Pemex facility.

The Italian firm expects the field to have an early production plateau of 8,000 barrels of oil per day (bopd).

The firm plans to commence full field production in late 2020 using a floating production, storage and offloading facility (FPSO), which is expected to have a treatment capacity of 90,000 bopd.

As part of the development plan, two additional platforms are scheduled to be installed one each on the Amoca field and the Tecoalli field.

Eni, which currently holds rights in six exploration and production blocks in the Sureste Basin, plans to make the final investment decision (FID) for the Area 1 in 4Q 2018.