Wintershall Dea has agreed to acquire a 37% stake in the Hokchi Block offshore Mexico from Hokchi Energy , the Mexican subsidiary of Pan American Energy .

The deal gives Wintershall an option to increase its stake to up to 40% at a later stage.

Wintershall Dea expects the acquisition to further strengthen its portfolio in the prolific Sureste basin.

Wintershall Dea Latin America management board member Thilo Wieland said: “Mexico is a growth country for Wintershall Dea, and the acquisition of the Hokchi Block interest is a clear sign of this.

“With Hokchi, we are gaining a producing asset that fully meets our strategic requirements, also in terms of efficiency and emissions. We are excited about continuing and further expanding our partnership with Hokchi Energy and its shareholder Pan American Energy.”

The acquisition forms part of Wintershall Dea’s broader portfolio diversification plan in Latin America.

The Hokchi shallow-water block started production in May 2020 and currently has a production capacity of approximately 26,000 barrels of oil equivalent per day (boepd).

By 2023, the field’s gross production capacity is planned to be increased to 37,000boepd.

Wintershall Dea Mexico managing director Martin Jungbluth said: “The Hokchi Block is located in the Sureste basin, where we already have a strong portfolio of promising licences and which is therefore familiar to us.

“It’s near our Zama, Polok, and Chinwol discoveries, as well as our own operated exploration block 30.”

Subject to obtaining government approvals, the transaction is planned to be complete before the end of the first quarter of 2023.