• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Reality catching up with EV forecasts
  • 9 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 4 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 9 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 15 days The Federal Reserve and Money...Aspects which are not widely known
U.S. Oil Is Replacing Russian Crude In EU Markets

U.S. Oil Is Replacing Russian Crude In EU Markets

As the EU contends with the…

Venezuela’s Vast Oil Wealth Could Become The World’s Largest Stranded Asset

Venezuela’s Vast Oil Wealth Could Become The World’s Largest Stranded Asset

Venezuela’s mounting economic challenges could…

Can Colombia Really Replace Oil And Gas Revenue?

Can Colombia Really Replace Oil And Gas Revenue?

Colombia is looking to move…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Eni Could Prove Mexico’s Energy Reform Successful

Mexico has given the go-ahead to Italian oil company Eni to drill offshore in the Gulf of Mexico.

Eni won an auction in late September to the rights to acreage in the southern Gulf of Mexico in the Bay of Campeche. The acreage is for shallow water tracts, and Eni won the rights to the Amoca, Mizton and Tecoalli oil fields. Together, the three fields could hold 800 million barrels of oil and 480 billion cubic feet of associated natural gas.

The September auction was the second installment of the “Round One” auction, as it is called. The first sale took place in July and yielded disappointing results. The September auction fared better, with Mexico awarding three out of the five contracts that were up for bid.

The map below details the September results, with “Area 1” in the lower left depicting Eni’s fields. Related: Saudi Cash Crisis Intensifies As Interbank Rates Soar

ADVERTISEMENT

(Click to enlarge) Related: An Unnoticed Casualty of The Commodities Price Drop

On December 1, Eni announced that it had signed a production sharing contract with Mexican authorities in Mexico City. The three conventional fields are located in shallow water at depths of just 20 to 40 meters, and are also close to shore. Eni says that they are located “in a context where Eni possesses proven expertise and where it operates worldwide with high efficiency and low operating costs.”

ADVERTISEMENT

Eni plans on drilling four wells to help delineate the extent of the oil bearing zones. Based on the results it will come up with a fast track development plan. Related: Why The East African Oil Bonanza Remains A Dream… For Now

The successful agreement for the production sharing contract shows both the determination on behalf of the Mexican government to breathe some life into its oil industry, and also the seriousness upon which Eni is treating the newly offered Mexican oil assets. The agreement bodes well for Mexico’s ability to open up its energy sector to investment and reverse what has been several years of persistent declines in output. If Eni is successful, it will spark much greater interest in Mexico’s oil potential.

Meanwhile, Mexico is gearing up for the next auction. On December 15, Mexico will tender 25 oil onshore oil and gas fields, in the third iteration of the “Round One” auction. On November 30, the government announced that winning companies must bid a minimum of 1 to 10 percent of pre-tax profits.

By Charles Kennedy Of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News