CNH Approves Hokchi Energy’s 2023 Work Plan

CNH approved Hokchi Energy’s work plan and budget for 2023. The plan includes the development of the contract CNH-R01-L02-A2/2015 at the Hokchi field, in shallow water near the coast of Tabasco. Here, the company set out to extract 26° API crude oil. 

The plan includes the drilling of three wells and the termination of another four, plus three minor repairs. Hokchi expects to retrieve 10.86MMb of crude and 3.91Bcf of gas. The budget approved for the Hokchi field is US$198.33 million, of which 51.1 percent will be for development, 45.06 for production and the rest for abandonment. In November, Hokchi modified its drilling plans and modified its production forecast, from 9.38MMb to 8.43MMb and from 2.93 to 3.33Bcf of natural gas. The company’s budget plan for 2022 previously stood at US$229 million and included exploration plans in Xaxamani. 

Hokchi is the third-largest private contributor to Mexico’s oil and gas production and the 14th-most important field at a national level. In September, the IOC announced that it plans to produce more than 32Mb/d in 2023.

In October 2022, Wintershall Dea acquired a 37 percent participation in the Hokchi block, with the possibility of increasing this to 40 percent.

According to CNH, private oil production declined in October 2022, mostly due to Fieldwood’s production decrease. Private players produced 105Mb/d, a month-over-month decrease of 7.5 percent. While the Mexican Association of Hydrocarbon Companies (AMEXHI) projected production of 209Mb/d for 2022, so far, the current production estimation is 49 percent below this goal.

In addition to Hokchi Energy’s commercial activities, its compromise with Mexico’s energy sufficiency also extends to social activities. AMEXHI presented La Energía del Pueblo, a compendium of collaboration activities between hydrocarbons companies and communities where they deploy their economic activities. Hokchi Energy participates in Access to a Dignified Life, a social program to help grant access to equal opportunities to children in Tabasco’s communities.