Operators Deliver Progress Reports

Operators in Mexico have delivered fresh news on their operations as offshore Shell and Cairn Energy offered an update on their progress and Jaguar E&P saw its modified exploration program approved.

Shell México is involved in 11 blocks in the country, the highest number among private operators offshore. Director General for Upstream Development Pablo Tejera Cuesta reaffirmed the company’s commitment and its long-term interest in Mexico and underlined that Shell’s plans had not fallen victim to budget cuts being implemented by some operators following the arrival of COVID-19. Tejera explained that the company had drilled and completed two wells this year and that drilling would resume soon.

Meanwhile, Cairn Energy has offered updates on its business in Mexico. The British company headquartered in Edinburgh has already been part of a major discovery this year after the announcement of oil found via the Saasken-1 NFW well on Block 10, where Cairn Energy has a 15 percent stake. Early estimations set potential resources between 200MMboe and 300MMboe. “The JV is working to appraise the discovery and to exploit nearby synergies to assess the potential for a commercial development,” reported Cairn.

On Block 9, where Cairn is the operator, and Block 7, where Cairn is a partner with operator Eni, results were less positive. “On Block 9, Cairn completed its second operated well in Mexico in 1Q20. The exploration objectives of the Bitol-1 (50 percent WI) were found to be dry and the well was permanently plugged and abandoned. On Block 7 (30 percent WI) the Ehecatl-1 well, operated by Eni, completed operations. The well did not find reservoired hydrocarbons and was permanently plugged and abandoned,” the company explained in its half year earnings report. However, the company underlined its commitment saying it will “continue to high grade exploration opportunities, focusing on resources with a clear path to commerciality, where developments can be optimized, and in fiscal regimes appropriate to current commodity price trends.”

Onshore, Jaguar E&P had modifications approved to its exploration plan for the BG-09 contractual area in Soto La Marina, Tamaulipas, in the Burgos Basin. According to Energía a Debate, the intention of the modification is to “evaluate the oil potential and incorporate contingent resources in the Oligocene through the possible execution of two operational scenarios: Base and Incremental.” Each operational step would require investment of US$34.25 million, reports CNH.