Fieldwood Mexico

History

2022: Lukoil bought 50% of Fieldwood Mexico

At the end of February 2022, Lukoil announced the purchase of 50% of the Block 4 project in the Gulf of Mexico. The transaction was made through the acquisition of Fieldwood Mexico. The remaining 50% of the project remained with the oil and gas company PetroBal (part of the Mexican conglomerate GrupoBAL).

The Block 4 project includes two sections with a total area of ​ ​ 58 square meters. km located on the shelf of the Gulf of Mexico 42 km from the coast, the sea depth in the area of ​ ​ the sections is 30-45 m. Within the sections there are two oil fields - Ichalkil and Pokoch - with recoverable hydrocarbon reserves of 564 million barrels of oil equivalent, more than 80% of which is oil.

Lukoil bought 50% of Fieldwood Mexico =

The deal amounted to $685 million. It includes directly the asset price of $435 million plus the actual expenses incurred from January 1, 2021 until the close of the transaction (about $250 million).

The Block 4 project is implemented on the basis of a product sharing agreement signed in 2016 for a period of 25 years with the possibility of extension for a period of up to 10 years.

Mexico is for us a strategic region within the framework of the development of international activities in the Apstrime segment. The new project, in which we will be an operator, is characterized by a significant confirmed resource base, significant mining potential and organically complements our existing portfolio of projects in the Gulf of Mexico, "said Lukoil President Vagit Alekperov.

This is not the first asset of a Russian company in Mexico. Lukoil entered the country in 2015, receiving 75% in the Amatitlan block development project. The operator is Petrolera de Amatitlan SAPI de CV. Companies conduct production as part of a service contract. In addition, the company participates in the development of Blocks 10, 12, 28 located on the shelf. At the first of them (Lukoil owns 20%), two prospecting wells were drilled, the data of which allow you to estimate geological resources of 200 million barrels of oil equivalent.^[1]

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