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Qatar buys stake from Eni to share in Mexico's Campeche field

By Renzo Pipoli
Qatar buys stake from Eni to share in Mexico's Campeche field
Qatar will buy a stake in Italy's oil production expected to come online in Mexico's Campeche offshore field, both companies announced on Sunday. Pictured, Eni's CEO Claudio Descalzi (L) and Qatar Energy minister Saad Sherida Al-Kaabi. Photo courtesy of Qatar Petroleum

Dec. 17 (UPI) -- Qatar Petroleum bought from Italy's Eni a 35 percent interest in three offshore fields in Mexico's Campeche bay area 1, estimated to yield over 100,000 barrels of oil by 2021.

"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," said Qatar Energy minister Saad Sherida Al-Kaabi.

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"Qatar Petroleum's international upstream footprint has been recently expanding in Brazil, Mexico, Argentina, Cyprus, Congo, South Africa, Mozambique and Oman," the company said. This is part of a plan to increase "in coming years" daily output to 6.5 million barrels of oil equivalent, from the current 4.8 million barrels.

Italy's Eni confirmed the accord, adding that it won 100 percent rights to Campeche area 1 in 2015, and that it will continue to be the operator of this area -- estimated to hold 2.1 billion barrels of oil equivalent, 90 percent of it oil. Development will begin next year but production levels of over 100,000 barrels per day will only be reached in 2021.

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"Eni is already a partner with Qatar Petroleum in Block 24 in Mexico, located in the deep waters of Cuenca Salina Basin, where Eni is the joint venture Operator with a 65 percent participating interest share," it added.

In addition to Area 1, Eni currently holds rights in five exploration and production blocks in the Sureste Basin, all as the operator, the company said. That includes area 7, with 45 percent; area 10, with 100 percent; area 14, with 60 percent; area 24, with 65 percent; and area 28, with 75 percent.

The stakes will change, however, as a result of accords signed on October 2018. Eni will give Lukoil a 20 percent stake in both the production sharing contracts for blocks 10 and 14, and at the same time acquire a 40 percent stake in Lukoil's block 12.

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Eni separately said on Monday it received approval from Indonesia authorities for its investment plan to develop the offshore natural gas Merakes project, which will supply the existing Bontang LNG plant.

Eni has been operating in Indonesia since 2001. Production areas include the Kutei Basin, East Kalimantan and Muara Bakau for combined output of 650 million standard cubic feet per day.

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Qatar announced earlier this month it was pulling out of OPEC, as it wanted to shift its focus to natural gas.

RELATED Eni to develop newly found 185M barrels of light oil offshore Angola

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