Hokchi Energy Delays Drilling Plans

CNH approved Hokchi Energy’s changes to its Extraction Development Plan in the area CNH-R01-L02-A2/2015, in shallow water near the coast of Tabasco. The modification includes the rescheduling of various activities, mainly regarding drilling. Of the six proposed wells, three production wells and one injection well will be drilled as a result of unscheduled stoppages for processing and compression equipment. The company also modified its production forecast, from 9.38 to 8.43MMb of oil and from 2.93 to 3.33Bfc billion of natural gas.

As an alternative, Hokchi Energy presented a plan to maintain activity, adjust the volume of hydrocarbons to be recovered and modified its Natural Gas Exploitation Program (PAGNA). The oil company expects to recover 127.71MMb of oil and 44.46Bcf of gas, with a total cost of US$1.41 billion, of which 75.69 percent is allocated to production, 18.68 percent to development and 5.63 percent to abandonment. 

In August, the company had increased its production by 20 percent compared to the previous month. Currently, Hokchi is the third-largest private contributor to Mexico’s oil and gas production and the 14th-most important field at a national level. In September, the IOC announced that it plans to produce more than 32Mb/d in 2023.

Earlier this year, the CNH approved Hokchi Energy’s work and budget plan for 2022 with an investment of US$229 million. From this budget, US$52.8 million was factored in as an investment to gather information about the profitability of the Xaxamani area, a process that concluded mid-October. The company is currently evaluating the gathered data. Last month, Wintershall Dea acquired a 37 percent participation in the Hokchi block with the possibility of increasing this to 40 percent. Subject to CNH and antitrust agency approvals, the companies expect to close before the end of 1Q23.

Andrés Brügmann, Vice President, Hokchi Energy, said earlier this year that the company contributes to Mexico’s energy security. “If we look at what the government takes from private offshore projects, it is currently more than 90 percent. Therefore, our investment complements their efforts to achieve energy security. Every business worldwide has some limitations: money, technical resources and expertise, as well as supplies. We bring all this to Mexico with our international connections.”