Hokchi Energy to farm out interest offshore Mexico to Wintershall

Hokchi Energy, the Mexican subsidiary of Pan American Energy, has agreed to farmout a 37% non-operated interest in Hokchi block in the Sureste basin offshore Mexico to Wintershall Dea.

The deal includes a conditional option for Wintershall to increase its participation up to 40% at a later stage, Wintershall said in a release Oct. 24.

The block was awarded in Mexico’s licensing round 1.2 and is operated by Hokchi Energy. The shallow-water block is developed as a subsea tie-back to two offshore platforms, Satellite and Central, and was brought on-stream in May 2020 following an appraisal campaign.

The well stream is piped over 24 km from the two offshore platforms to an onshore processing plant where oil and gas is separated and treated for further sale to Mexican state company Pemex. The block currently produces around 26,000 boe/d with a planned ramp-up to a gross production of 37,000 b/d by 2023.

In Mexico, Hokchi Energy and Wintershall Dea are already partners in Block 2, in the southeast of the Gulf of Mexico.

The deal is expected to close before the end of first-quarter 2023 subject to government approvals, including from Mexico’s National Hydrocarbons Agency and antitrust agency.