Eni Makes New Oil Find Offshore Mexico

Eni Makes New Oil Find Offshore Mexico
Eni (NYSE: E) has announced a new oil find in Upper Miocene sequences on the Sayulita Exploration Prospect in Block 10, offshore Mexico.

Eni (NYSE: E) has announced a new oil find in Upper Miocene sequences on the Sayulita Exploration Prospect in Block 10, offshore Mexico.

According to preliminary estimates the new find may contain between 150 million and 200 million barrels of oil equivalent in place. Sayulita-1 EXP, which led to the find, is the seventh successful well drilled by Eni offshore Mexico in the Cuenca Salina/Sureste Basin and the second commitment well of Block 10, Eni highlighted. It is located approximately 43 miles off the coast and around nine miles away from the previous oil discovery of Saasken that will be appraised toward year-end, according to Eni.

Sayulita-1 EXP was drilled by the Valaris 8505 semisub rig in a water depth of 1,066 feet. The well, which reached a total depth of 5,767 feet, is said to have found 180 feet of net pay of good quality oil in the Upper Miocene sequences. The reservoirs show excellent petrophysical properties, Eni noted, adding that data acquired at the well indicates a production capacity of up to approximately 3,000 barrels of oil per day.

In February last year, Eni announced the Saasken 1 EXP oil discovery on the Saasken Exploration Prospect in Block 10. In a statement at the time, Eni outlined that preliminary estimates showed the discovery may contain between 200 and 300 million barrels of oil in place.

“The successful result, that comes after the 2020 discovery well Saasken 1 EXP, confirm the value of the asset and open the potential commercial outcome of Block 10 since several other prospects located nearby may be clustered in a synergic development,” Eni said in a company statement.

“Mexico is a core country in the strategy of future organic growth of Eni, which is currently producing more than 20,000 barrels of oil equivalent per day (boepd) from Area 1 on an early production configuration, and expects to ramp-up to 65,000 boepd in 2022 and reach a plateau of 90,000 boepd in 2025,” Eni added in the statement.

The Block 10 joint venture comprises Eni, which holds a 65 percent stake, Lukoil, which holds a 20 percent interest, and Capricorn, a wholly owned subsidiary of Cairn Energy plc, which holds the remaining 15 percent interest. 

Eni has been present in Mexico since 2006 and established its wholly owned subsidiary, Eni Mexico S. de R. L. de C. V., in 2015. Eni currently holds rights in eight exploration and production blocks in the country, six as operator, all of which are located in the Sureste Basin in the Gulf of Mexico.

Last month, Eni announced a “significant” oil discovery on the Eban exploration prospect in CTP Block 4, offshore Ghana. In June, Eni, through Vår Energi, which is jointly owned by Eni (69.85 percent) and HitecVision (30.15 percent), announced a “significant” oil and gas discovery in production license PL027 in the Southern North Sea.

To contact the author, email andreas.exarheas@rigzone.com

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