Oil and gas company Hokchi Energy, a subsidiary of Argentina-based Pan American Energy, announced its investment plan for the next 25 years in order to develop the block it won in Round 1.2 of the oil tenders that emerged from the energy reform.

In total, the company plans to invest US$ 2.5 billion in different stages to extract oil and gas in shallow waters off the coast of Tabasco, for which it has already drilled 5 of the 14 wells planned for the Salina del Istmo Basin, located in the Gulf of Mexico.

The CEO of the Pan American Energy consortium, Marcos Bulgheroni, explained that in the first stage US$ 800 million will be allocated for the construction of two production platforms, laying of marine and land pipelines and the installation of an oil and gas processing plant in the municipality of Paraíso.

During the presentation of the project, the official mentioned that the plan was already approved by the National Hydrocarbons Commission (CNH) after, with the five wells successfully drilled, the existence of reserves was certified for more than 187 million barrels of oil equivalent (BOE), a unit of energy based on the approximate energy released by burning one barrel (42 U.S. gallons or 158.9873 liters) of crude oil.

With this program, he added, Hokchi Energy became the first private oil company to generate revenue for Mexico, having obtained hydrocarbon production in an extended range test.

Bulgheroni explained that the construction of the infrastructure on land will generate about 1,000 direct jobs and around 200 permanent jobs when the facilities become operational, starting the second half of 2020. The company aims to produce 147.8 million barrels of oil and 45.4 trillion cubic feet of gas.

MexicoNow

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