The work program and budget put forward by Eni Mexico for a shallow-water Block 2.1 in the Southeast basin was approved this week by CNH. During its 46th Extraordinary Session, the regulatory body assessed Eni’s plans for the shared production contract CNH-R02-L01-A14.CS/2017, before giving the Italian oil giant the green light.
The site in question is located in shallow waters, off the coast of the state of Tabasco, with a total area of 466.46km². Eni Mexico plans to continue the exploratoration process through to Sept. 2022, evaluating the hydrocarbon potential in the Pleistocene, Cretaceous and Upper Jurassic plays. The IOC expects to spend between US$2.01 and US$3.10 million, taking into account two operational scenarios. Of this budget, 57 percent will be allocated to well drilling, 26 percent to geological studies, 15 percent to reservoir engineering, and 2 percent to geophysical analysis.
At the end of May 2022, CNH also authorized an amendment to an Eni exploration plan for a Round 3.1 shallow water block off the coast of Veracruz. This project falls under the approved plan for contract CNH-R03-L01-G-CS-01/2018 which covers a surface area of 807km², with water depths ranging from 70 to 600m, It is located 45km from Coatzacoalcos in the Isthmus Saline geological region within the Southeast basin. According to a CNH publication, the modified plan seeks to update the schedule of activities to be carried out as well as the amount of investment set aside for the project. Furthermore, Eni aims to continue its exploratory studies, which will comprise the drilling of two wells. The company plans to further analyze the geophysical makeup of the site before assessing health, safety and environmental concerns. For this contractual area, the IOC has set aside a budget of between US$116.28 and US$128.52 million.
Since entering the Mexican market in 2015, Eni has proven to be one of the major success stories of the 2014 Energy Reform, becoming the first private company to produce offshore oil in Mexican waters. Overall, the Italian IOC is the operator of six offshore fields. However, following the installation of the first privately operated FPSO unit in Mexico, Eni’s star field is undoubtedly Mizton, with production ramping up to 18,881b/d in March of 2022.