PJSC LukOil Completion of Entry into Area 4 Project in Mexico (8361C)
25 February 2022 - 6:01PM
UK Regulatory
TIDMLKOD
RNS Number : 8361C
PJSC LukOil
25 February 2022
LUKOIL COMPLETES ENTRY INTO AREA 4 PROJECT
IN SHALLOW WATERS OF MEXICO
PJSC LUKOIL announces completion of transaction of buying the
50% operator interest in the Area 4 project in Mexico through the
acquisition of the operator's holding company. The Mexican
authorities approved the deal on February 3, 2022. The transaction
value amounted to $435 million plus expenditures incurred since
January 1, 2021 as of the transaction completion date (about $2 5 0
million).
The project includes 2 blocks, 58 square kilometres in total,
which are located 42 kilometres offshore in the Gulf of Mexico. The
sea depth at the blocks is 30-45 meters. Two oil fields - Ichalkil
and Pokoch - are located within the blocks. The recoverable
hydrocarbon reserves of the fields amount to 564 million barrels of
oil equivalent, more than 80% of which is crude oil.
Production at the fields started in the fourth quarter of 2021;
current average daily oil production exceeds 25 thousand barrels.
The project is developed in three phases, with a peak daily
production rate estimated to be more than 115 thousand barrels of
oil equivalent. The partner in the project is PetroBal, the oil and
gas subsidiary of Mexican conglomerate GrupoBAL, with the remaining
50% interest.
The project is 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.
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