Russia's Lukoil agreed to acquire a 50% operator interest in the Area 4 project in Mexico through the acquisition of the operator's holding company on Monday.
The transaction is valued at $435 million, plus expenditures incurred in 2021 as of the transaction completion date.
The project includes two blocks of 58 square kilometers in total, which are located 42 kilometers offshore in the Gulf of Mexico.
The sea depth at the blocks is between 30 and 45 meters and two oil fields - Ichalkil and Pokoch - are located within the blocks. The recoverable hydrocarbon reserves from the fields are estimated at 564 million barrels of oil equivalent, more than 80% of which is crude oil.
The construction of production facilities is currently being finalized, and production of first oil is scheduled for the third quarter of 2021. The project is being developed in three phases, with a peak daily production rate estimated to be more than 115 thousand barrels of oil equivalent.
'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 Lukoil.
The completion of the transaction is subject to certain conditions, including approval by the Mexican authorities.
By Murat Temizer