Eni, Lukoil agree to transfer offshore Mexico interests

Eni and Lukoil have signed a farm-out agreement for the transfer of participating interests in three exploration licences in Mexico’s shallow waters.

According to the agreement, Eni will give Lukoil a 20% stake in the production-sharing contracts (PSC) in both Area 10 and Area 14 and will acquire a 40% stake in Lukoil’s PSC for Area 12.

The objective of the deal, considering the proximity of the blocks, is to diversify the exploration risks, accessing wider opportunities and increasing mutual operational synergies.

The new joint ventures will be as follows: Area 10 (Eni 80% operator, Lukoil 20%); Area 12 (Lukoil 60% operator, Eni 40%); Area 14 (Eni 40% operator, Citla 40%, and Lukoil 20%).

The agreement is subject to the approval of Mexico’s National Hydrocarbon Commission (CNH).

The three blocks are all in the Sureste basin and they were awarded to Eni and Lukoil in 2017 as the outcome of an international competitive bid round called “Ronda 2.1.”

The exploration drilling campaign is planned to start as early as mid-2019.

Source: Offshore Magazine