Eni and Lukoil Form Offshore Mexico JVs

Eni S.p.A. and PJSC Lukoil have signed a farm-out deal to transfer participating interests in three shallow-water exploration licenses offshore Mexico, Eni reported Tuesday.

Under the agreement, Eni will give Lukoil a 20-percent stake in the Area 10 and Area 14 production sharing contracts (PSC) and will receive a 40-percent interest in Lukoil’s Area 12 PSC, Eni stated. Given the close proximity of the blocks, Eni noted that the deal will allow it and Lukoil to diversity exploration risks, access wider opportunities and boost mutual operational synergies.

The new joint ventures, which Lukoil stated await approval from the National Hydrocarbons Commission of Mexico, include the following Sureste Basin blocks in the Bay of Campeche:

• Area 10: Eni 80 percent operator and Lukoil 20 percent stakeholder
• Area 12: Lukoil 60 percent operator and Eni 40 percent stakeholder
• Area 14: Eni 40 percent operator, Citla 40 percent and Lukoil 20 percent stakeholders, respectively

Lukoil and Eni won the licenses for the blocks last year in Mexico’s licensing round 2.1, Lukoil stated. In addition, the Russia-based company noted that it won rights to Block 28 in the Sureste Basin along with Eni in March 2018 in conjunction with licensing round 3.1. Eni owns 75 percent of Block 28 and serves as operator while Lukoil owns the remaining 25 percent, Lukoil added.