First Oil and the Journey Towards Optimized Field Development
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First Oil and the Journey Towards Optimized Field Development

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Cas Biekmann By Cas Biekmann | Journalist and Industry Analyst - Wed, 10/28/2020 - 13:34

You can watch the video of these presentations here.

Eni, the Italian IOC kicked off the first panel of Mexico Oil & Gas Summit 2020, taking place online for the first time due to the COVID-19 pandemic.  

Considered one of the world’s most industrious companies with a hydrocarbon production of of 1,871MMboe/d as of 2019, Eni has had significant presence in Mexico after the enactment of the 2014 Energy Reform. The company is on track to remain one of Mexico’s largest private producers. During their presentation, Carmine De Lorenzo, Managing Director of Eni Mexico, and Francesco Luigi Peselli, General Director of Mizamtec at Eni Mexico, outlined the company’s functions in the sector.

De Lorenzo highlighted Eni’s mission in Mexico, defined by responsibility, integrity, transparency and a commitment to a sustainable energy transition. To this end, Eni aligned to the UN’s sustainable development goals. It aims to incorporate greener solutions to its portfolio and forecasts important milestones to be achieved between 2035 and 2050. The company’s goal is to build upon three pillars: operational excellence, long-term carbon neutrality and alliances for development. Eni places a strong emphasis on building relationships with its surrounding communities, developing infrastructure and helping with the fight against COVID-19, among many other actions.

The 67km2 of Area 1 are considered the most important for the company, as it owns a 100 percent of the share. Other areas are shared with partners including Cairn, Citla and Lukoil. Area 1 consists of the Amoca, Mizton and Tecoalli shallow-water complex, known as AMT. AMT’s contract was signed in late 2015. 

Eni explored Area 1 successfully by reprocessing 3D seismic data, identifying sweet spots via geologic modelling and drilling a well both rapidly and efficiently. De Lorenzo mentioned that familiarizing the company with Mexico’s regulatory framework was of the essence. Eni’s goal to reach an early production stage in 2019 was met on June 30 of that year. The company’s development plan was only approved by CNH on July 31, 2018. After this point, Eni produced 10Mb/d in its early production stage. “100Mb/d is the goal for the complete production phase, which will begin in 2021,” De Lorenzo said. So far, Eni has invested US$1 billion in Area 1. 

Mexico is certainly to benefit from this production as well. “92.3 percent of Area 1’s gross profits correspond to the Mexican state,” Peselli said. “We are proud to be producing around 21Mb/d after starting at 8Mb/d,” he added regarding the Miztón field, which currently produces the majority of oil in Area 1. Peselli said the company has plans to increase production in a short period of time. "Amoca's second platform is currently being built in Altamira with 100 percent Mexican content. Its installation is planned for 2Q21.”

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