Image credits: Flickr, Joe deSousa
News Article

Hokchi Begins Production in Mexico

By Peter Appleby | Wed, 05/27/2020 - 15:55

Hokchi Energy announced yesterday that it had opened the valve of its Hokchi-4DEL well to begin production at the Hokchi field in the shallow waters some 27km northwest from the Dos Bocas port. The news marks another step forward for Mexico’s private sector.

The company’s CEO Enrique Lusso told El Economista that the progress of the block “reflects the company’s commitment to Mexico, its regulatory and authorities and to the strengthening of the local economy and national economy.”

Hokchi, a subsidiary of the Argentinian Pan American Energy, won Hokchi field in Round 1.2 together with E&P Hidrocarburos Servicios. It was officially handed over to Hokchi and its partner in January 2016. The company began its drilling campaign in October 2016, drilling five wells, including Hokchi-4DEL. The company’s drilling campaign was finished in only 343 days, three months ahead of schedule.

The construction infrastructure around the development of the Hokchi field, including the Satellite and Central platforms used to drill Hokchi’s wells, involved 4,500 direct and indirect jobs said El Economista. Investment in the field so far stands at US$1 billion.

Governor of Tabasco Adán Augusto López Hernández told the paper that “the announcement is excellent news for the state and its population. For our part, we will continue to collaborate with the private initiative to ensure proper performance in activity, with the aim of promoting productive and quality employment for Tabasco’s society.”

The Hokchi field was first discovered by PEMEX in 2009 and reported to hold 178.1MMb crude. Two wells, Hokchi-1 and Hokchi-101, were drilled in 2009 and 2011 respectively by PEMEX and later indefinitely abandoned.

Earlier this month, AMEXHI Director General Merlin Cochran told Mexico Oil and Gas Review that “Hokchi is likely to be producing a further 15Mb/d to add to overall production figures this year.”

Hokchi’s production will be added to the 25Mb/d that Cochran believes could be produced by Fieldwood and Petrobal at the Ichakil and Pokoch fields and Eni’s 22Mb/d that could be produced through the AMT complex by the end of this year. The director general noted that with Hokchi’s field now in the development phase, alongside companies like Eni and Fieldwood, “investment will progress toward the US$39 billion mark and beyond.

Photo by:   Flickr, Joe deSousa
Peter Appleby Peter Appleby Journalist and Industry Analyst