Eni CEO Says Mexico Oil Find Likely Bigger Than Estimates
RAVENNA, Italy, March 29 (Reuters) - Italy's Eni said on Wednesday it expected that its recent discovery off the coast of Mexico would hold more than the 800 million barrels of oil it originally estimated.
"This is an important find and we've found new layers of good light oil that make us think there's more," Chief Executive Claudio Descalzi said at an oil and gas conference.
Eni said earlier this month it had found "meaningful" reserves of oil off the coast of Mexico after becoming the first international oil company to drill a well in the country after a 2013 reform opening up the sector to investors.
State-controlled Eni, which in recent years has made major gas finds in Mozambique and Egypt, holds one of the best discovery track records in the industry.
Its organic reserve replacement ratio -- a measure of its ability to find hydrocarbons -- stood at 193 percent in 2016 compared to a 35 percent peer average.
"Eni's Zohr discovery is a game changer," Egypt's oil minister Tarek El Molla said on Wednesday, referring to Eni's discovery in Egyptian waters of the biggest gas field ever found in the Mediterranean.
Descalzi said Eni would follow the same strategy in Mexico as it had adopted in Egypt, using infrastructure already in place to help speed up time to market.
He said the discovery, some 6-7 km from the coast, was close to installations owned by Mexico's state-owned oil company Pemex. He added he would speak to Pemex in coming months to discuss using some of their infrastructure in the area.
Royal Dutch Shell, Chevron and Exxon Mobil have recently signaled the oil industry's return to Mexico's deep waters with high bids in a government auction.
Since taking over as Eni CEO in 2014, oil veteran Descalzi has streamlined the company, focusing attention on the upstream job of finding oil and gas.
Asked about the group's retail gas and power business which serves 11 million clients, he said a decision would be taken this year on whether or not to sell all or part of it. "There is a lot of interest from industrial players and funds," he said.
Descalzi, former head of Eni's upstream activity, is set to be re-appointed CEO of Eni in April for a second three-year mandate.
(Editing by Edmund Blair)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension