LUKOY PJSC Lukoil (CE)

By Jaime Llinares Taboada

Lukoil PJSC said Monday that it has entered into an agreement to acquire a 50% operated interest in the Area 4 oil project offshore Mexico for $435 million plus expenditures.

The Russian oil company said the project contains the Ichalkil and Pokoch fields, with recoverable reserves of 564 million oil-equivalent barrels, of which more than 80% is crude oil.

Construction of the facilities is being finalized and first oil production is scheduled for the third quarter of 2021. Peak production rate is estimated to be more than 115,000 oil-equivalent barrels a day.

PetroBal, a subsidiary of Mexican conglomerate GrupoBAL, owns the remaining 50% in Area 4.

"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," President Vagit Alekperov said.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

July 05, 2021 02:55 ET (06:55 GMT)

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