Eni to fasttrack Area 1 development offshore Mexico
Mexico’s National Hydrocarbon Commission has approved Eni’s development plan for the Amoca, Miztón and Tecoalli discoveries, located in Area 1, in the Campeche Bay.
The approval comes 32 months after Eni signed the Area 1 production-sharing contract, won in an international bid round, and 17 months after the drilling of the first well. Area 1 is estimated to hold 2.1 Bboe in place (90% oil).
The development will be phased, initially with an early production phase with startup planned in 1H 2019, through a wellhead platform on the Miztón field. Production will be sent onshore through a 10-in. multi-phase line and then treated at an existing PEMEX facility. Early production plateau is expected to be 8,000 b/d of oil.
Full field production will start in late 2020 using an FPSO with a treatment capacity of 90,000 b/d of oil. Two additional platforms will be installed on the Amoca field and the Tecoalli field. Area 1 production plateau is expected to be 90,000 b/d of oil from 2021.
Total development capex is estimated at $1.9 billion.
Eni expects to take the final investment decision (FID) in 4Q 2018. However, some initial investments to fund long lead items and to start the construction of the first platform for the early production have already been authorized.
CEO Claudio Descalzi said: “… Area 1 development will be a fasttrack project in line with Eni’s strategy aimed at maximizing the long-term value for all stakeholders and shareholders.”