Lukoil, Eni sign offshore Mexico exploration block deal

- All agreements are subject to approval from National Hydrocarbons Commission of Mexico

Russian oil producer Lukoil and Italy's Eni signed an agreement on the mutual purchase of participation interests in Blocks 10, 12 and 14 on the Mexican shelf in the shallow waters of the Gulf of Mexico, according to Russian company’s statement on Tuesday.

In line with the agreement, Lukoil will assign a 40 percent stake in Block 12 to Eni while remaining a project operator with a 60 percent interest.

In turn, Eni will assign a 20 percent share in Block 10 and 20 percent in Block 14 to Lukoil, but will act as the project operator for both projects.

Blocks 10, 12 and 14 are located in the Sureste Basin.

The agreement enables Lukoil to expand its portfolio in the region, diversify risks and build up competences in the exploration area, the statement said.

A mandatory condition for completion of the deals is to obtain approval from the National Hydrocarbons Commission of Mexico, according to the statement.

In 2017, following the first phase of the second licensing round in Mexico, Lukoil and Eni were awarded the licenses for the blocks.

In March 2018, the outcome of the first phase of the third licensing round in Mexico saw both companies awarded rights to Block 28 in the Sureste Basin. The Italian company was awarded a 75 percent stake and became the operator while Lukoil received a 25 percent interest.

By Firdevs Yuksel

Anadolu Agency

energy@aa.com.tr