Eni and Russia's Lukoil ink Mexico offshore exploration deal

Eni and Russia's Lukoil ink Mexico offshore exploration deal

Eni has inked a farm-out pact with Russian independent Lukoil for the transfer of participating interests in three exploration licenses in Mexico’s shallow waters, the Italian energy giant said on Tuesday in a statement.

Eni will give Lukoil a 20 percent stake in production sharing contracts in Area 10 and Area 14 and will acquire a 40 percent stake in Lukoil’s PSC for Area 12, according to the statement.

The agreement is subject to the approval by the Mexican authorities, the statement said.

The blocks are all located close together and the deal aims to "diversify the exploration risks, accessing wider opportunities and increasing mutual operational synergies," said the statement.

The three blocks are all located in the promising Sureste Basin and exploratory drilling is planned to start as early as mid-2019, Eni stated.

The blocks were awarded to Eni and Lukoil in 2017 following the 'Ronda 2.1' international tender issued by the National Hydrocarbon Commission (CNH).

After the approval of Tuesday's swap agreement by the Mexican authorities, Eni will hold rights in seven exploration and production blocks all offshore, Eni said.

In July 2018 CNH approved Eni’s development plan for the discoveries of Amoca, Mizton and Tecoalli, located in Area 1, which hold an estimated 2.1 billion barrels of oil equivalent in place in world-class reservoirs.