Area 1

Area 1 Oil Project Profile

Location and Geology

The Area 1 oil project is located in the Bay of Campeche, Gulf of Mexico, approximately 10 kilometers offshore from the Tabasco coast in southeast Mexico. The project area includes three oil fields: Amoca, Miztón, and Tecoalli. These fields are situated in shallow waters with a depth of about 32 meters.

Ownership and Operation

The Area 1 block is owned by a consortium consisting of Eni Mexico (Eni), which holds a 65% participating interest, and Qatar Petroleum, which holds a 35% participating interest. Eni Mexico is the operator of the project. Eni acquired a 100% participating interest in Area 1 through a competitive bid round in September 2015 and later sold a 35% stake to Qatar Petroleum in December 2018.

Reserves and Production

The Area 1 project is estimated to hold approximately 2.1 billion barrels of oil equivalent, with 90% of this being oil and the remaining 10% being associated gas. The project aims to achieve a production plateau of around 90,000 barrels of oil per day (bopd) and 75 million standard cubic feet of gas per day.

Development Details

• Phased Development: The project is being developed in a phased manner. Early production from the Miztón field began in June 2019, with an initial production capacity of 15,000 bopd. Full field development is expected to be completed by 2024.
• Infrastructure: The development includes 33 wells connected to three wellhead platforms, plus a monopod on the Tecoalli field. Two wellhead platforms are currently in operation on the Miztón and Amoca fields, while another platform on the Amoca field and the monopod on the Tecoalli field are still under development.
• FPSO: The project utilizes the Miamte MV34 Floating Production, Storage, and Offloading (FPSO) unit, which arrived in Mexico in January 2022 and started hydrocarbon production from the Miztón field in February 2022. The FPSO has a processing capacity of 90,000 bopd, 75 million cubic feet of gas per day, and 120,000 barrels of water injection per day, with a storage capacity of 700,000 barrels of crude oil.

FPSO Details

• Mooring System: The Miamte FPSO is moored using a state-of-the-art Disconnectable Tower Yoke Mooring System (DTYMS), designed to allow the unit to disconnect its mooring and depart the area to avoid winter storms and hurricanes prevalent in the Gulf of Mexico.
• Capacity and Operations: The FPSO can process 90,000 bopd, 75 million cubic feet of gas per day, and 120,000 barrels of water injection per day. It has a crude oil storage capacity of 700,000 barrels and was designed with the latest technology to ensure energy efficiency and zero flaring.

Contractors and Suppliers

• MODEC: MODEC was contracted to supply, charter, and operate the FPSO. MODEC's subsidiary, Sofec, designed and supplied the DTYMS for the FPSO.
• McDermott: McDermott was awarded the engineering, procurement, and construction (EPC) contract for the wellhead platform (WHP1) on the Amoca field.
• Sapura Energy: Sapura Energy supplied the pipelay vessel Sapura Kencana 3500, which performed multiple operations including cable-laying, installation, and lifting.
• COSCO Shipyard: COSCO Shipyard was subcontracted by MODEC for the modification of the Felicity Modec tanker into the Miamte FPSO.

Community and Environmental Initiatives

Eni has launched several initiatives to support local communities in the state of Tabasco, including programs to reduce school drop-outs, support micro-enterprises, promote healthy eating among children and adolescents, and ensure access to healthcare. These initiatives are part of Eni's commitment to improving conditions for disadvantaged communities.

Milestones

• Acquisition and Approval: Eni acquired the Area 1 block in September 2015 and signed a production sharing contract in December 2015. The project was approved by the National Hydrocarbon Commission of Mexico in August 2018.
• Early Production: Early production from the Miztón field began in June 2019. The Miamte FPSO arrived in Mexico in January 2022 and started production in February 2022. The first cargo from the field was exported in April 2022.

Technological and Operational Highlights

• Fast Track Approach: The project exemplifies Eni's fast track approach, where the acquisition, exploration, development, and production phases are run in parallel to expedite the project timeline.
• State-of-the-Art Technology: The Miamte FPSO is equipped with advanced technology, including a modular tensioning system and a disconnectable tower yoke mooring system, ensuring efficient and safe operations.