Eni Confirms Block 10 Oil Strike Offshore Mexico

New find could hold up to 200 million BOE in place.

Semisubmersible Valaris 8505.
Semisubmersible Valaris 8505.

Eni confirmed it encountered oil shows in the Upper Miocene sequences on the Sayulita Exploration Prospect in Block 10 in the mid-deep water of the Cuenca Salina Sureste Basin. Preliminary estimates put the new find at between 150 and 200 million BOE in place.

Sayulita-1 EXP is the seventh successful well drilled by Eni in the basin and the second commitment well of Block 10. It is located approximately 70 km off the coast and just 15 km away from the previous oil discovery of Saasken that will be appraised toward year-end. The well was drilled to a total depth of 1758 m by the semisubmersible Valaris 8505 in a water depth of 325 m.

Sayulita-1 EXP found 55 m of net pay of good-quality oil, and Eni said the reservoirs show excellent petrophysical properties. An intensive data collection has been carried out on the well and the data acquired indicate a production capacity for the well of up to approximately 3,000 B/D of oil.

Eni said the finds in Block 10 to date confirm the value of the asset and open the potential commercial outcome since several other prospects located nearby may be clustered in a synergic development.

The Block 10 joint venture comprises operator Eni (65%), Lukoil (20%), and Capricorn, a wholly owned subsidiary of Cairn Energy plc (15%).

Mexico is a core country in the strategy of future organic growth for Eni, which is currently producing more than 20,000 BOE/D from Area 1 on an early production configuration and expects to ramp up to 65,000 BOE/D in 2022 and reach a plateau of 90,000 BOE/D in 2025.