*The full field production is expected to be achieved in 2021 through a floating production, storage, and offloading facility with a treatment capacity of 90,000 barrels of oil per day
Qatar Petroleum has entered into an agreement with Eni to acquire a 35% participating interest in three offshore oil Fields in Mexico.
The agreement covers the Amoca, Mizton, and Tecoalli offshore oil fields, which lie in Area 1 in Mexico’s Campeche Bay.
The agreement is subject to customary regulatory approvals by the government of Mexico.
Following such approval, both Eni and Qatar Petroleum will jointly hold 100% interest in the Area 1 production sharing contract.
The National Hydrocarbon Commission of Mexico approved the phased development plan for Area 1 allowing for early production to start by mid- 2019 through a wellhead platform in the Mizton field and a multiphase pipeline for treatment at an existing Pemex facility.
The full field production is expected to be achieved in 2021 through a floating production, storage, and offloading facility with a treatment capacity of 90,000 barrels of oil per day.
Two additional platforms will be installed on the Amoca field and the Tecoalli field. Area 1 is estimated to hold 2.1bn barrels of oil equivalent, 90% of which is oil.
This is the second presence for Qatar Petroleum in Mexico. At the end of January 2018, Qatar Petroleum won exploration rights in five offshore blocks in the Perdido and Campeche basins as part of a consortium comprising Shell and Eni respectively.
On the agreement, HE the Minister of State for Energy Affairs, Saad Sherida al-Kaabi, also President & CEO of Qatar Petroleum said, “We are pleased to sign this agreement, with our valued partner, Eni, to participate in the development and production of oil fields in Mexico. This agreement marks another milestone for Qatar Petroleum as it strengthens its international footprint and expands its presence in Mexico.”
Al-Kaabi added: “Qatar Petroleum is pleased to enhance its fruitful cooperation and partnerships with a major energy player like Eni. We are also excited about participating in this development in Mexico’s Campeche Bay, and with first oil production expected by mid-2019; we look forward to collaborating with Eni to ramp up production to around 90,000 barrels of oil per day by 2021.”
In line with its growth plans, this opportunity represents another step in implementing Qatar Petroleum’s strategy to expand its international footprint, and to pursue Latin America as an important core area for its upstream activities.
Qatar Petroleum’s international upstream footprint has been expanding recently in Brazil, Mexico, Argentina, Cyprus, Congo, South Africa, Mozambique and Oman.
“These expansions go hand in hand with our previous announcements to develop and increase our natural gas production from 77mn tons per year to 110mn tons in the coming years; and to raise our production capability from 4.8mn barrels oil equivalent per day to 6.5mn barrels during the next decade,” al-Kaabi added.
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