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Eni Authorized to Explore Saasken Further

By MBN Staff | Fri, 12/11/2020 - 16:09

CNH has approved Eni’s multi-million dollar exploration plans to extend its search of the Saasken field, a discovery the company announced in February could hold up to 300MMboe.

CNH approved the exploration plan modification which allows Eni to invest approximately US$126.71 million to widen the reserve potential from Block 10, located in the Cuenca Salina area of the Sureste Basin, some 65km from the coast of Tabasco, el Economista reports. The Italian IOC won the block in Round 2.1, 2017.

There are two areas of potential that Eni could drill within Block 10, named Sáasil and Sinaán. Following the company’s characterization work, four others prospects have been named; Celestún, Sayulita, Holbox and Mazunte. There is a 39 percent chance of success finding light oil on the prospects, the drilling of which will be decided either in 2021 or 2022.

CNH approved three base scenarios for the exploration plan. The first will see investment of US$70.4 million on one well, which will rise to US$122.9 million if the well is considered a success. If the company decides to drill two wells, the base investment will begin at US$88.1 million and rise to US$122.9 million if works are extended. In the final scenario, drilling two wells would require a base investment of US$74.2 million that could rise to US$126.7 million if results are deemed successful and another well drilled.

On Twitter, CNH announced the approval saying: “The objective of the modification is to update the portfolio of prospectuses that can be drilled, incorporating four identified on the basis of the studies carried out. In addition, geophysical activities are incorporated and others are rescheduled.”

In February, Eni announced the discovery of the Saasken field after it had drilled the Saasken-1 NFW well. The well reached a final drilling depth of 3,830mand drilled by Valaris’ 8505 semi-submersible in 340m water depth.

Block 10 is an area owned by a consortium made up of Eni as operator (65 percent stake), Russian oil giant Lukoil (20 percent) and the UK’s Capricorn Energy (15 percent) and is one of a number of interests Eni has in Mexico.

Eni’s Mizton field on its shallow water Area 1 block is already in production. According to CNH data, it produced 16.8Mb/d in October. The final CAPEX cost of Area 1 alone is expected to reach US$1.9 billion. The company describes Mexico as a “core country in Eni’s strategy for future organic growth”.

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