Lukoil to operate project offshore Mexico

PJSC Lukoil has entered into an arrangement to acquire the 50% operator interest in the Space 4 job in Mexico as a result of the acquisition of the operator’s keeping enterprise.

The transaction price is US$435 million as nicely as expenditures incurred in 2021 as of the transaction completion day. The completion of the transaction is issue to particular problems, including approval by the Mexican authorities.

The undertaking consists of two blocks, 58 km² in total, which are located 42 km offshore Mexico in the Gulf of Mexico. The sea depth at the blocks is 30-45 m. Two oilfields – Ichalkil and Pokoch – are situated in the blocks. The recoverable hydrocarbon reserves of the fields amount to 564 million boe, a lot more than 80% of which is crude oil.

The development of production services is at present currently being finalised, and creation of very first oil is scheduled for 3Q21. The challenge is to be created in 3 phases, with a peak each day manufacturing amount approximated to be much more than 115 000 boe.

The undertaking is to be applied below a output sharing settlement, which was signed in 2016 for a period of time of 25 many years with the correct for an extension for up to 10 yrs. The lover in the job is PetroBal, the oil and gasoline subsidiary of Mexican conglomerate GrupoBAL, with the remaining 50% curiosity.

“Lukoil considers Mexico a strategic location for the advancement of our global upstream functions. The new venture, where we will be the operator, is notable because of to its appreciable explored reserves and major generation possible. It the natural way enhances our existing portfolio of tasks in the Gulf of Mexico,” mentioned Vagit Alekperov, President of PJSC Lukoil.

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