Area 4

Area 4 Project in the Gulf of Mexico

The project is located in the Bay of Campeche, Gulf of Mexico, Mexico.
It is 42 km away from the coastline of the Campeche area and 96.56 km away from Ciudad del Carmen.

The project includes two oil and gas fields: Ichalkil and Pokoch.
These fields are anticipated to hold proven reserves of 41.4 million barrels of oil equivalent (boe), containing 68 million barrels of light crude oil and 92 billion cubic feet of gas.

The reserves are present in the lower and middle Cretaceous rock, shaped by compressional tectonic activity.
The Ichalkil reservoir is a smooth anticline divided by two reverse faults.

The reserves were discovered in 2005 by exploratory drilling.
The Ichalkil-1 well discovered light oil in the Cretaceous carbonated rocks. Subsequent wells, including Ichalkil-2 and Ichalkil-1DL, further appraised the field.

The development phase began in April 2018.
The project involves the installation of two lightweight platforms tied-back to existing Pemex infrastructure through pipelines.
Two jack-up rigs are used for drilling six development wells, with the first rig starting operations in December 2019 and the second in March 2020.

Initial production started in 2020, with an initial rate of 20,000 barrels of oil equivalent per day (boepd).
Peak production is estimated to reach 100,000 boepd and 120 million cubic feet of gas per day by 2026.

The project is operated by Fieldwood Energy, with equal ownership between Fieldwood Energy and Petrobal, under a long-term production sharing contract awarded by the Mexican government’s National Commission of Hydrocarbons (CNH).

The project involves the Coral, Mamba, and Agulha fields.
The deepwater Area 4 block contains more than 85 trillion cubic feet of natural gas.

The Coral South project, led by Eni, involves the Coral Sul FLNG (Floating Liquid Natural Gas) plant for gas liquefaction and export.
ExxonMobil will lead the construction and operation of future natural gas liquefaction and related facilities for the Rovuma LNG project.

The Coral South project is operational, with the first cargo of liquefied natural gas exported.
The Rovuma LNG project, currently under development, aims to produce, liquefy, and commercialize natural gas from the Mamba complex.

The project is expected to transform Mozambique into a leading regional LNG exporter and a major global energy player.
It will create significant revenue for the economy, support industrialization, and boost local businesses, creating around 5,000 local jobs and promoting local skills development.

The project involves a consortium including Eni, ExxonMobil, China National Petroleum Corporation (CNPC), Galp, Korea Gas Corporation (KOGAS), and Empresa Nacional de Hidrocarbonetos E.P. (ENH).

For both projects, the development follows a similar lifecycle as outlined in general oil and gas field development:

Exploration: Involves identifying potential sites and conducting exploratory drilling to discover reserves.
Feasibility Studies and Conceptual Design: Assessing the feasibility, estimating potential yield and costs, and creating detailed documents for investment decisions.
Frontend Engineering and Design (FEED): Creating high-quality process and engineering documents outlining project requirements for engineering, procurement, and construction stages.
Detailed Design and Procurement: Drafting detailed engineering plans and procuring necessary materials and equipment.
Construction and Installation: Building the designs, installing essential machinery and equipment, and conducting functional testing.
Production and Maintenance: The phase where the oil and gas are produced, and measures are taken to sustain production over time.

Each of these phases is crucial for the successful development and operation of the Area 4 projects in both the Gulf of Mexico and the Rovuma Basin.