Repsol makes two significant deepwater oil discoveries in Mexican waters

Repsol is the first company to announce a discovery from a block acquired in Mexico’s deep water Round 2.4.
The two consecutive oil discoveries, in the deepwater Polok-1 and Chinwol-1 exploration wells in the Salina Basin, come less than two years after Block 29 was formally awarded by the Comisión Nacional de Hidrocarburos (CNH).
The company has this year posted six discoveries from six exploratory wells worldwide, whose total gross resources add up to 650Mboe.

Press release

04 May 2020 - 18:30 CEST PDF 371 KB Download

Repsol has made two significant offshore oil discoveries in Mexico’s deep water with its Polok-1 and Chinwol-1 exploration wells in Block 29 in the Salina Basin. Both wells confirmed high quality reservoirs with excellent properties, encountering net oil pay of 200 meters and 150 meters respectively.

With these finds Repsol has posted six discoveries from six wells drilled worldwide this year, uncovering combined gross resources in excess of 650Mboe, in the US, Mexico and Colombia.

The discoveries extend Repsol’s long-term exploration track record in Latin America and North America. Repsol applies the latest-generation tools and technology in this field, combined with the skills of an experienced exploration workforce.

Both wells in Mexico were drilled below their cost and time estimations with the highest standards for health and safety and under strict health protocols to avoid the propagation of Covid-19 to both offshore and onshore facilities.

The consortium partners Repsol (30%, operator) PC Carigali Mexico Operations, the Mexican subsidiary of PETRONAS (28.33%), Wintershall DEA (25%) and PTTEP México E&P Limited (16.67%) will evaluate all data collected in the wells to prepare the discoveries’ appraisal plan, to be submitted to Mexico’s hydrocarbons regulator CNH before the end of the year.

Deep waters

The discoveries in Mexico’s Block 29 are just 12 km apart from each other, and 88 kilometers (55 miles) from the Mexican coastline of Tabasco, in water depths of approximately 600 meters (1,969 feet).

The Polok-1 exploration well was drilled to a total depth of 2,620 meters and encountered more than 200 meters of net oil pay from two zones in the lower Miocene. The Chinwol-1 exploration well was drilled to a total depth of 1,850 meters and encountered more than 150 meters of net oil pay from three zones in the lower Pliocene.

Wireline Formation testing performed on both wells has shown good flow capacity in multiple stations along the Miocene and Pliocene reservoir units.

Repsol recently received approval from the CNH to drill the company’s third deep water exploration well offshore Mexico, located in Block 10 offshore Veracruz, which will be spudded in the following days using the same Maersk Deep Water Valiant drillship.

Repsol in Mexico

Repsol operates a total of six blocks offshore Mexico, three in deep water and three in shallow water areas. The company continues to evaluate all seismic and available data from the rest of the blocks in order to fulfill its work programs approved by CNH.

The company also has a retail fuel business in the country, which it has been expanding since 2018. Repsol has 250 service stations, where it retails fuel with its exclusive Neotech formulation, designed at its Tech Lab installations. The company also participates in logistic installations to store and distribute fuel around the country of 120 million inhabitants.

Additionally, Repsol has a long-term alliance with Mexico’s Kuo Group. The partners together operate the world´s tenth-largest synthetic rubber producer.

Repsol also participates in a lubricants joint venture with local manufacturer Bardahl, distributing high-end products throughout Latin America.

Location map

Map showing the location of the offshore oil discoveries in Mexico