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Eni Starts Production from Area 1 Offshore Mexico

Source: www.gulfoilandgas.com 7/2/2019, Location: South America

Eni has started the early production phase from the Mizton field in Area 1, located in the Campeche Bay offshore Mexico. This is the first step in the development of Area 1, estimated to hold 2.1 billion of oil equivalent in place (90% oil) in the Amoca, Mizton and Tecoalli fields. Eni acquired Area 1 in a competitive bid round in September 2015.

Production from the Mizton field platform, located in 34 meters of water depth, is sent through a multiphase sealine to Eni’s Onshore Receiving Facility (ORF) in Sanchez Magallanes, State of Tabasco. After separation at ORF, production is delivered to Pemex’s San Ramon plant for treatment. Production has started from the Mitzon 2 well that has shown a very good productivity index; the early production phase now is expected to produce up to 15,000 barrels of oil per day. Full field production will start in early 2021 utilizing a Floating Production, Storage and Offloading facility (FPSO) and reaching a plateau of 100,000 barrels of oil equivalent per day. The Plan of Development for Area 1 also includes two additional platforms on the Amoca field and one on the Tecoalli field.

Eni Chief Executive Officer Claudio Descalzi commented: “We have achieved production startup in less than two and half years after Eni started its first well in Area 1 and in less than one year from the approval of the Plan of Development. This is in line with the expectations of the Mexican Government to increase the country’s overall production. Eni is the first international company to start offshore production in Mexico after the Energy Reform, and we look forward to continue working with the Mexican authorities”.

The production startup from Area 1 further confirms Eni’s distinctive fast track approach to efficient upstream development projects.

In May 2019, Eni signed with the Tabasco State Government a Memorandum of Understanding aimed at identifying and developing educational, health and socioeconomic projects, in order to cooperate and contribute to the government plans of improving the conditions of the more disadvantaged communities in the Tabasco State. Eni is present in Mexico since 2006 and established its wholly owned subsidiary Eni Mexico S. de R. L. de C. V. in 2015. Currently Eni holds rights and is Operator in six exploration and production blocks in the Sureste Basin. In addition, in October 2018 Eni agreed to an interest swap with Lukoil to acquire a non-operated participation in another block in Mexico.

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