Lukoil enters Gulf of Mexico but pulls from Iraq?
LUKOIL ENTERS HYDROCARBON PRODUCTION PROJECT IN THE SHALLOW WATER OF MEXICO
PJSC LUKOIL announces the entry into an agreement to acquire the 50% operator interest in the Area 4 project in Mexico (hereinafter – the Project) through the acquisition of the operator's holding company. The transaction value is $435 million plus expenditures incurred in 2021 as of the transaction completion date. The completion of the transaction is subject to certain conditions, including approval by the Mexican authorities.
The Project includes two blocks, 58 square kilometers in total, which are located 42 kilometers offshore Mexico 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.
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 developed in three phases, with a peak daily production rate estimated to be more than 115 thousand barrels of oil equivalent.
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. The partner in the Project is PetroBal, the oil and gas subsidiary of Mexican conglomerate GrupoBAL, with the remaining 50% interest.
"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 PJSC LUKOIL.
More in Russian: https://www.kommersant.ru/doc/4888616
LUKOIL sell West Quarna-2 https://www.bloomberg.com/news/articles/2021-07-03/iraq-oil-minister-says-lukoil-considers-selling-stake-in-field
WQ2 production: https://www.lukoil.com/Business/Upstream/Overseas/WestQurna-2
Fieldwood Energy, 1k people: https://www.fieldwoodenergy.com/about/
Fieldwood Energy is one of the largest operators in the Gulf of Mexico, a region that is our heritage and an integral part of our DNA.
Each member of our management team has spent most —if not all— of their careers operating in the Gulf, and the company has been built by acquiring the offshore businesses of some of the basin’s leading operators. It is our people, partnerships and commitment to operational excellence with a focus on safety that are the foundations of our continued growth.
Fieldwood Energy’s long-term commitment to the Gulf of Mexico began when the company was established in September 2013 with the acquisition of Apache’s Gulf of Mexico Shelf business, followed shortly thereafter by the acquisition of SandRidge’s Gulf of Mexico and Gulf Coast business units in early 2014. In late 2015, following the historic Mexican energy reforms, Fieldwood successfully bid on the Ichalkil and Pokoch fields in the shallow water Bay of Campeche, and in 2017 became the first U.S. company to drill a well offshore Mexico in over 75 years. In April 2018, Fieldwood significantly expanded its deepwater Gulf of Mexico presence through the acquisition of Noble Energy’s deepwater assets.
Fieldwood’s significant footprint in the deepwater and shallow water Gulf of Mexico includes interests in approximately 400 offshore blocks covering approximately two million gross acres, including approximately 1,000 wells. In addition to our U.S. presence, Fieldwood is also the operator of the Ichalkil and Pokoch fields in Mexico’s shallow water Bay of Campeche located approximately 60 miles offshore Ciudad del Carmen.
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