Eni Announced New Oil and Natural Gas Discovery Offshore Mexico

SEATTLE (Oil Monster): Eni SpA- the leading Mexican oil producer announced new oil and gas discovery offshore Mexico.

The new discovery is in the Yatzil exploration prospect in Block 7, located in the mid-deep water of the Cuenca Salina in the Sureste Basin in the Gulf of Mexico. The company estimates the well to hold approximately 200 million boe. Eni owns 45% stake in Block 7 and is operated in partnership with Capricorn Energy PLC and Citla Energy SAPI de CV. The company currently produces 30,000 boe/d from the Area 1 phased development project, which it expects to complete by 2025.

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The figures published by Comisión Nacional de Hidrocarburos (CNH), Mexico had produced natural gas at an average of 4.09 Bcf/d in 2022, significantly higher from 3.85 Bcf/d in the year before that. The private sector production, in which Eni plays a key role, averaged at 234.7 MMcf/d in 2022, up from 203.81 MMcf/d in 2021.

Claudio Descalzi, CEO, Eni noted that the company expects its upstream production to grow through 2026 and plateau by 2030. Furthermore, it sees oil declining and natural gas rising in its mix.

Eni had recently upgraded its capital expenditure guidance over the next four-year period by 15%, anticipating a total spending of $39 million during this period.