The transaction value is US$435 million as well as expenditures incurred in 2021 as of the transaction completion date. The completion of the transaction is subject to certain conditions, including approval by the Mexican authorities.
The project includes 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 located within the blocks. The recoverable hydrocarbon reserves of the fields amount to 564 million boe, more than 80% of which is crude oil.
The construction of production facilities is currently being finalised, and production of first oil is scheduled for 3Q21. The project is to be developed in three phases, with a peak daily production rate estimated to be more than 115 000 boe.
The project is to be implemented under a production sharing agreement, which was signed in 2016 for a period of 25 years with the right for an extension for up to 10 years. The partner in the project is PetroBal, the oil and gas subsidiary of Mexican conglomerate GrupoBAL, with the remaining 50% interest.
"Lukoil considers Mexico a strategic region for the development of our international upstream operations. The new project, where we will be the operator, is notable due to its considerable explored reserves and significant production potential. It naturally complements our existing portfolio of projects in the Gulf of Mexico," said Vagit Alekperov, President of PJSC Lukoil.
Read the latest issue of Oilfield Technology in full for free: Issue 2 2021
Oilfield Technology’s second issue of 2021 starts with a report from KPMG that examines the outlook for the Scottish oil and gas sector. The rest of the issue is dedicated to articles covering the offshore supply chain industry, offshore asset integrity, expandable liner technology, advances in drilling, data security, flow control, EOR and methane emissions.
Exclusive contributions come from Tata Steel, EM&I Group, 3X Engineering, Enventure Global Technology, Varel Energy Solutions, Adrilltech, Tendeka and more.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/05072021/lukoil-to-operate-project-offshore-mexico/