Fieldwood Energy

History

2021: Lukoil bought 50% in Fieldwood Energy for $0.5 billion

On July 5, 2021, Lukoil announced its entry into the Block 4 project, which produces hydrocarbons on a shallow shelf in Mexico. The Russian company received a 50% stake in this project by buying a holding company that owns its operator.

With whom the agreement was concluded is not specified. However, it is known that in 2015, the National Commission for Hydrocarbons of Mexico (Comisión Nacional de Hidrocarburos), which is part of the government of the country, transferred Block 4 oil and gas fields to Petrobal and Fieldwood Energy. From that moment, the two companies had equal shares in the project, and Fieldwood Energy was appointed operator.

Lukoil acquired Fieldwood Energy for $0.5 billion =

Most likely, Lukoil entered into an agreement with Fieldwood Energy. The Russian company only noted that its partner in the project is PetroBal with a participation of 50%. The value of the transaction is $435 million plus expenses incurred in 2021 before the close of the transaction.

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

By the beginning of July 2021, the development of fields is being completed, production is scheduled for the third quarter of 2021. The project is implemented in three phases with the expected maximum daily production in the amount of more than 115 thousand barrels of oil equivalent.

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.[1]

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