Eni Mexico, a subsidiary of Eni S.p.A., has awarded MODEC, Inc. a letter of intent (LOI) to supply, charter and operate a floating production storage and offloading (FPS) vessel that will be deployed in Mexico’s Bay of Campeche, MODEC reported Thursday.

“We are extremely honored and proud to have been selected to provide and operate the FPSO for Eni Mexico,” MODEC President and CEO Toshiro Miyazaki said in a written statement.

According to MODEC, the LOI outlines a firm time charter period of 15 years with five one-year extension options as well as a purchase option. In addition, the company stated that it will oversee the engineering, procurement, construction, mobilization, installation and operation of the FPSO – including topsides processing equipment and the hull and marine systems. MODEC unit SOFEC, Inc. will design and supply the FPSO’s disconnectable tower yoke mooring system, MODEC also noted.

Eni Mexico will deploy the FPSO 10 kilometers off the Mexican coast in Offshore Area 1 at a water depth of approximately 32 meters, MODEC stated. The local Eni subsidiary owns the field operatorship outright, and Area 1 is currently in the pre-development phase, the FPSO supplier added.

On August 1, 2018, Eni reported that Mexico’s National Hydrocarbon Commission (CNH) approved its Development Plan (PoD) for the Area 1 discoveries Amoca, Miztón and Tecoalli. The company reported that its phased $1.9 billion PoD for Area 1, which holds an estimated 2.1 billion barrels of oil equivalent in place, includes:

• An early production phase, slated for a First Half 2019 startup, through a well head platform on the Miztón field linked to a 10-inch multiphase line that will deliver production onshore to an existing Pemex facility
• Full field production, starting in late 2020, using the FPSO and installing two platforms on Amoca and one on Tecoalli

Eni also noted that it plans to take a final investment decision on Area 1 during the fourth quarter of this year but added that it has already authorized some initial investments. MODEC stated that the FPSO will be able to process 90,000 barrels of crude oil per day, 75 million cubic feet of natural gas per day and 120,000 barrels of water injection per day. Also, it reported that the facility will boast 900,000 barrels of crude oil storage capacity.

“This project will continue to allow MODEC to showcase our distinguished capabilities in EPCI, charter and operations of floating productions systems,” concluded Miyazaki. “We are committed to carry out this major project by cooperating closely with our client in order to contribute to the energy industry in Mexico.”

(From Rigzone)