Eni gets nod on oil

THE outcome from a potential $1,9 billion commitment to offshore Mexico could realise 90 000 barrels of oil per day from 2021, Italian energy company Eni said.

Eni CEO Claudio Descalzi said yesterday he was “extremely satisfied” that Mexican authorities signed off on the development plan for a string of discoveries in the so-called Area 1 basin, located in the shallow waters of the Campeche Bay.

The company said it was envisioning total development spending of $1,9 billion barrels and a production plateau of 90 000 barrels per day from 2021. The approval came about three years after the company signed a production sharing contract with Mexican authorities and 17 months after drilling began.

Mexico expects $8 billion from offshore oil and gas auction.

“Area 1 development will be a fast-track project in line with Eni’s strategy aimed at maximising the long term value for all stakeholders and shareholders,” Descalzi said in a statement.

Initial production slated for the first half of 2019 would realise only 8 000 barrels per day. Full production begins in 2020 using a floating production, storage and offloading facility. The company in December finished drilling a well in the shallow waters in the Campeche Bay off the coast of Mexico. After completion, Eni revised its estimate for Area 1, from 1,4 billion to 2 billion barrels of oil equivalent. UPI.