Eni SpA (E), which has been in the Mexico since 2006, said Tuesday it got three out of the 10 offshore blocks awarded by Mexico’s National Hydrocarbon Commission in the Sureste Basin, Gulf of Mexico. ADRs declined more than 2% intraday. The company will operate Block 10 (Eni 100%), Block 7 (Eni 45%, Cairn Energy 30%, Citla Energy 25%) and Block 14 (Eni 60%, Citla 40%), with all of the licenses to be managed through Eni Mexico, according to a statement. The contract awards, which will be production sharing agreements, are still subject to final approvals.
The award will boost Eni’s presence in a market that only opened up to foreign investments in 2014 and has “huge” growth potential. The company set up its wholly-owned subsidiary in 2015. Eni already holds a 100% stake in Area 1 in the Sureste Basin, and the new blocks are joined to Area 1, implying Eni “will build a new core area of considerable size with significant operational synergies in the country,” the statement added.