Mexico’s National Hydrocarbon Commission (CNH) has approved Eni’s Development Plan (PoD) for the discoveries of Amoca, Miztón and Tecoalli, located in Area 1 in the shallow waters of the Campeche Bay in Mexico.
This achievement comes 32 months after Eni signed the Area 1 Production Sharing Contract (PSC), won in an international bid round, and 17 months after the drilling of the first well, the company said.
Claudio Descalzi, Eni’s CEO, said that 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.”
Area 1 is estimated to hold 2.1 billion of oil equivalent in place (90% oil). 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).
Full field production will start in late 2020 utilizing 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.
Eni expects to take the Final Investment Decision (FID) in Q4 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 authorized, the company added.