German crude oil and natural gas producer Wintershall Dea has completed its acquisition of a 37% non-operated participating interest in the oil producing Hokchi Block, offshore Mexico.
Wintershall Dea acquires 37% in Hokchi block. (Credit: Hokchi Energy)
The company, together with the remaining partners in the Hokchi Block, has secured all the government approvals and signed a Production Sharing Contract amendment.
Through the acquisition, Wintershall Dea becomes the second-largest interest holder in the Hokchi Block after operator Hokchi Energy, a subsidiary of Pan American Energy.
Also, the transaction enables the company to further strengthen its presence in Mexico.
Wintershall Dea Latin America management board member Thilo Wieland said: “We are very pleased to complete the transaction. The acquisition and the significant production we are adding to it are exactly in line with our strategy to further expand our international portfolio.
“We are thus strengthening our position in Mexico, one of Wintershall Dea’s most important growth countries.”
Hokchi Block is a producing asset that was awarded in Mexico’s licensing round 1.2 and is operated by Hokchi Energy.
The field is in the Sureste Basin and is located close to the Zama, Polok and Chinwol discoveries, along with the company’s own operated exploration Block 30.
The shallow-water block was developed as a subsea tie-back of the producing wells to two offshore platforms, Hokchi Central and Hokchi Satellite.
The produced hydrocarbons from two offshore platforms are transported to a dedicated onshore facility where oil and gas are separated and treated for sale to the Mexican company Pemex.
Wintershall Dea said that the block currently produces around 27,000 barrels of oil equivalent per day fully addresses its strategic requirements, in terms of efficiency and emissions.
Upon closing of the transaction, Wintershall Dea will have a 37% stake in the Hokchi Block, while its operator Hokchi Energy holds a 59.4% stake and AINDA a 3.6% stake.
Wintershall Dea Mexico managing director Martin Jungbluth said: “The interest in the producing Hokchi field is an excellent complement to our strong, balanced portfolio in Mexico, which includes prospective exploration assets, key development projects such as Zama and Polok, and our operated Ogarrio field.
“We look forward to now starting the joint work of further developing the field with operator Hokchi Energy.”
