Pan American Energy gets approval for US$ 2.5 billion drilling plan in the Gulf of Mexico
Hokchi Energy, a Mexican subsidiary of oil and gas company Pan American Energy LLC, reported that the National Hydrocarbons Commission (CNH) approved its US$ 2.5 billion Development Plan in the Hokchi field in the Gulf of Mexico thus becoming the first private operator to receive such authorization after the approval of Mexico’s Energy Reform.
The Development Plan foresees the installation of two platforms, which will include seven producing wells and seven injection wells, linked to an onshore processing plant. The development of Hokchi aims to produce 147.8 million barrels of oil and 45.4 trillion cubic feet of gas, with a recovery factor of 37%.
Previously, the company carried out the Evaluation Plan, which was completed three months ahead of schedule and included the drilling of five wells, one more than the initial proposal presented.
After the approval of the Energy Reform, Hokchi Energy became the first private company to perform drilling work in shallow waters and to generate the first revenues for the Mexican State from a production sharing contract in the Gulf of Mexico.
As result of the first bidding process of Round 3 carried out by the CNH in March of this year, Pan American Energy LLC was also the winner of a production sharing contract to explore and exploit, if necessary, in the Area 31, located in shallow waters of the Southeast Basin of the Gulf of Mexico, where also in the same round, Total E & P Mexico SA de C.V, in consortium with BP Exploration México, S.A. de C.V and Pan American Energy LLC, were declared winners of Area 34, located in the same Basin.