Hokchi gets green light for development of Xaxamani field

Mexico's hydrocarbons regulator CNH has given the green light to Hokchi Energy's US$3 billion plan for developing and operating the Xaxamani oil and gas field.

In a session on Tuesday, CNH approved Hokchi's development plan and its work program for the field for 2024 and 2025. The regulator said Hokchi expects to start producing oil and gas from Xaxamani in 2028. 

The field is located in the shallow waters of the Salina basin, offshore Veracruz state in southeastern Mexico.

CNH said that Hokchi aims to invest a total of US$1.1bn to develop Xaxamani and spend a further US$1.9bn to operate it through 2048.

In 2030, the company is forecasting peak production of 18,400b/d of crude oil and 3.9mn cubic feet per day of natural gas.

Hokchi plans to drill 15 wells and build four platforms and eight pipelines. It will commission a floating production and storage (FPSO) platform for the field.

The operator will load crude oil directly from the FPSO onto tankers, while the natural gas will be sent to an existing onshore facility and sold to Pemex, Mexico's national oil company.

By 2048, when Hokchi's operating contract expires, the Xaxamani field will have produced 97.8mn barrels of oil and 20.3bn cubic feet of gas.

Hokchi Energy is a subsidiary of Argentine firm Pan American Energy. It is the operator of the Hokchi field off the coast of Tabasco state, where it produces 27,000boe/d, making it one of the largest privately operated fields in Mexico.

The company is currently embroiled in a legal dispute with debt-laden Pemex over the NOC's alleged failure to pay for Hokchi's oil and gas output.