Oil breakthrough for Mexico with Eni discovery

The Italian energy company makes first new offshore discovery since energy sector reforms.
By Daniel J. Graeber  |  March 23, 2017 at 9:30 AM
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March 23 (UPI) -- Italian energy company Eni said Thursday it confirmed the potential for oil offshore Mexico in the first drilling campaign by a foreign company since 2013.

Eni said it confirmed the presence of oil in the Amoca-2 well, located in the shallow waters in the Campeche Bay near Mexico's southern tip.

CEO Claudio Descalzi said the discovery is a first for his company in Mexico and the first by a foreign company since national energy reforms were enacted in 2013.

"This important discovery comes in a country where Eni has not yet operated and confirms our exploration capabilities," he said in a statement.

The company said the reserve potential from the Amoca-2 well was still being examined, but it estimated the prospects were high.

Mexican President Enrique Peña Nieto moved through reforms to draw private investors to the state energy sector after more than 70 years of a monopoly controlled by state-run Petroleos Mexicanos, or Pemex. The reforms could bring in up to $415 billion in investments over the next 20 years as the country establishes links to the rest of the world.

Mexico aims to produce around 3.5 million barrels per day by 2025. For Eni, the company said it's evaluating the option to put its fields there on the fast-track to development. It created its Mexican subsidiary in 2015.

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