17 Jun 2021 17:34

Lukoil, Eni begin drilling second well at Block 10 of Mexican shelf

MOSCOW. June 17 (Interfax) - The joint venture of Italy's Eni (operator, 65%), Lukoil (20%) and British Cairn (15%) has begun drilling its second prospecting well - Sayulita-1EXP at Block 10 in the Gulf of Mexico at the beginning of June, the press service for the Russian oil company told Interfax.

The first Saasken-1EXP well penetrated 80 meters of effective oil-saturated strata with light oil, Lukoil said. "A large complex of studies was carried out in the well, the data obtained indicate the potential commercial attractiveness of Block 10, as several other identified prospects located within the block can provide a synergistic effect for the project," the company said.

According to preliminary estimates, the initial geological reserves of the discovered Saasken field may be between 200 and 300 million barrels of oil.

As reported, the first exploration well was drilled in Block 10 in February 2020, leading to the discovery of an oil field.

Lukoil began operations in Mexico in July 2015, when the company entered the Amatitlan block development project. The 230-square-kilometer Amatitlan block is located 68 km from the town of Posa Rica in the state of Veracruz. The operator of the project is Petrolera de Amatitlan SAPI de CV (PdA). Lukoil's share is 50%. The project is being implemented under a service contract for production of hydrocarbons. Produced hydrocarbons are owned by Pemex. The produced oil is delivered by motor transport to the Soledad gathering system (30 km from the Amatitlan block). Operator services for hydrocarbon production are provided on a cost recovery basis.

In July 2017, Lukoil won the tender as part of the second license round for Block 12. Operations are being carried out under a production sharing agreement. Block 12 is located in the southern part of the Gulf of Mexico, 50 km offshore (Torno Largo, Mexico). The area of the block is 521 sq. km. In March 2018, Lukoil, as part of a consortium with Italy's Eni, won the right to contract for Block 28. "Lukoil's share in the consortium will be 25%, the operator with a 75% share is Eni. The block is located on the shelf of the Gulf of Mexico at depths of 20 to 500 meters. The project work program includes drilling two exploration wells by 2022.

In November 2018, Lukoil and Eni signed an agreement to mutually acquire stakes in Blocks 10, 12, and 14. In accordance with the agreement, Lukoil transferred 40% of Block 12 to Eni, remaining the operator of the project with a 60% stake. Eni, in turn, transferred to Lukoil 20% in Block 10 and 20% in Block 14, remaining the operator of the projects.