Eni Strikes Oil Once Again

Eni announced that it discovered oil offshore in Mexico once more. The Italian oil giant found a 200MMboe deposit in Block 7 of Yatzil in the Southeast Basin. The discovery is 65km away from the coast and 30km away from other discoveries.

Eni drilled the well using the Valaris DPS5 semi-submersible drilling rig in water 284m deep. The well was drilled to a total depth of 2,441m. The Yatzil-1 EXP discovered over 40m of good-quality net oil production, with excellent petrophysical properties confirmed by extensive subsurface data collection. “[The discovery is] located in the mid-deep water of the Cuenca Salina in the Sureste Basin, offshore Mexico. According to preliminary estimates, the new finding may contain around 200MMboe in place,” wrote the company.

"The successful result comes after the Saasken and Sayulita discoveries in Block 10 and confirms the value of Eni’s Mexican asset portfolio, contributing to the potential synergic cluster development of several prospects located nearby," announced the IOC.

The Block 7 exploration project is composed of Eni with a 45% stake, Capricornio with 30% and Citla Energy with 25%. ENI is among the three private operators that drive 80% of private production in Mexico.

“Eni has been present in Mexico since 2006 ... Currently, Eni holds rights in eight exploration and production blocks, six as the operator, all located in the Sureste Basin in the Gulf of Mexico,” reads the statement.

Mexico and Italy have strong commercial and diplomatic ties. The European country also contributes to Mexico’s energy scene. “Italian companies are present in all sectors of the energy industry in Mexico, including Italy’s Eni in the fossil fuels sector and Enel in renewables; both have a strong presence in the country. Enel has invested the most in renewable energy in Mexico. Italy and its companies are playing a fundamental role in the energy transition, which includes not only generation but also energy savings and climate change issues. Recently, ENEL opened two new companies in Mexico dedicated to smart cities and sustainable mobility and has signed contracts with the government for the electrification of the bus system in Mexico City. Italy respects the vision of the federal government and sees potential for growth in the energy sector in Mexico,” said Luigi De Chiara, the Italian Ambassador to Mexico, to MBN.

This news comes as private oil investments remain stagnant in Mexico due to the suspension of bidding rounds for more private E&P projects. Nevertheless, private companies continue to strike oil in previously granted areas.