Eni executives confirmed in late October 2018 that farm-out talks for its 100% WI in the CNH-R01-L02-A1/2015 (Amoca-Mizton-Tecoalli) contract area continue. Talks "are proceeding" in negotiation phase, but the company does not expect to see any cash reflection in its balance sheet this year. Reports in early April 2018 indicated that Eni was in talks to farm-out WI to Qatar Petroleum. Up until the late October comments, made in a Q3 2018 conference call, Eni had neither confirmed or denied farm-out reports. It is interesting to note that Qatar Petroleum is already partnered with the Italian company in the deepwater Round 2.4 Block 24. That tract is located in the Salina de Istmo Basin. As for CNH-R01-L02-A1/2015, on 31 July 2018, the Comision Nacional de Hidrocarburos (CNH) approved Eni's development plan for the shallow water Production Sharing Contract (PSC). While the company's roadmap for the offshore block calls for a FPSO to be moored in 2020, though Eni plans to kick off an early production scheme on the Mizton Field via a platform. Fast-track production will account for 8,000 bo/d. Eni, which has already reached out to contractors, plans to have an FPSO with the capacity for 90,000 bo/d to handle production from the Mizton and Amoca fields. The FPSO will also have the capacity for 75 MMcfg/d and 80,000 bw/d. Production for the Tecoalli Field is forecast to begin in 2024. Eni expects to take the Final Investment Decision (FID) in 4Q 2018. The PSC contract area is estimated to hold 2.1 billion of oil equivalent in place (90% oil). Eni has drilled a series of wells in the CNH-R01-L02-A1/2015 contract since winning the area in 2015. The overall plan calls for 22 development wells and ten injector wells (it is assumed that the four exploration wells drilled in the contract area will be completed). Natural gas will be transmitted via a 24.3 km subsea pipeline to the onshore San Ramon facility (operated by Pemex). Up to 25% of the FPSO will contain 'Mexican content.' The project also calls for four wellhead platforms. Eni won the three-field contract area with 100% WI on 30 September 2015 at Mexico's Round 1.2. The company made a bid of 83.75% for the contract area under a PSC model.<P />
Mexico, CNH-R01-L02-A1/2015