Offshore staff
MOSCOW – Lukoil has entered an agreement to take a 50% operated interest in Mexico’s shallow-water offshore Area 4 project, through acquiring the operator’s holding company.
The other partner in the project is PetroBal, the oil and gas subsidiary of Mexico’s GrupoBAL.
Estimated cost of the transaction is $435 million plus expenditures incurred this year. Completion remains subject to approval from the Mexican authorities.
Area 4 comprises two blocks, covering a total of 58 sq km (22 sq mi), 42 km (27 mi) offshore in the Bay of Campeche. Water depths range from 30-45 m (98.4-147 ft).
The concessions include the Ichalkil and Pokoch fields, with combined recoverable reserves of 564 MMboe, of which more than 80% of which is crude oil.
Work on the production facilities should finish shortly, with first oil set to flow later in the current quarter. This is a three-phase development, targeting peak production of more than 115,000 boe/d.
The 25-year production sharing agreement was signed in 2016 by Fieldwood Energy and PetroBal, with options to extend by up to 10 years.
07/05/2021
