Block 4: Reserves Rise Off Tabasco Coast

Wed, 01/22/2020 - 05:58

Fieldwood Energy and PetroBal together won the Block 4 CNH-R01-L02-A4/2015 contract in the shallow water Round 1.2. The company signed for Block 4, which is split between two fields, Pokoch and Ichalkil, on Jan. 1 2016. The partnership splits the block 50-50 with Fieldwood Energy acting as operator. In 2017, Fieldwood and Block 4 were at the center of a historic moment as Fieldwood became the first American company to drill in offshore Mexican territory in 75 years. 

When the 57.966km2 block was bid, initial PEMEX estimates put reserves at 68MMb. However, since exploring the block, Fieldwood has been able to predict a dramatic increase from just two wells drilled: Pokoch-1DEL Ichalki-2DEL. With six more wells potentially to be drilled across the two sites, overall reserves could hit the 650MMb mark. “The revised 455MMb estimate includes only oil, not gas, and we believe the recoverable reserves to be much higher, around 650MMb,” explains Fieldwood Energy's CEO.

The operator’s extraction plan, which was approved in January 2019, foresees investment of US$7.582 billion across the contract of the block to 2041. This would deliver some US$1.8 billion to the Mexican government within the same timeframe. According to Carlos Morales Gil, PetroBal CEO, Ichalkil will begin producing in 2020 with an initial production of 20Mb/d. Peak production will see Ichalkil produce 100Mb/d of crude and 120MMcf/d of gas.