Lukoil coordinating Yoti field exploration with Mexican authorities

MOSCOW. Dec 22 (Interfax) - Lukoil is working on a plan of action with the Mexican National Hydrocarbons Commission for the Yoti field discovered within the offshore Block 12.

The company is drilling at the shallow-water block in the Cuencas del Sureste province under contract CNH-R02-L01-A12.CS/2017.

"Lukoil is coordinating with the regulator regarding the further study of the Yoti field," the company told Interfax.

Sources close to the project say the company has already approved a 2023 budget and that the drilling of an exploration well could be included the proposed schedule works.

Lukoil tapped oil in November 2021 after drilling a well at the Yoti West-1 EXP structure. The geological resources of the new deposit could be up to 250 million boe. Lukoil planned to draft a plan to assess the Yoti West field.

Lukoil Upstream Mexico in 2017 obtained the right for exploration and production of hydrocarbons at Block 12 in the Gulf of Mexico. The Block has an area of 521 square kilometers. The stakeholders are Lukoil Upstream Mexico as project operator with 60% and Eni with 40%.

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, which is 30 km from the Amatitlan block. Operator services for hydrocarbon production are provided on a cost recovery basis.

Lukoil is also participating in developing offshore Blocks 10 and 28. Two exploratory wells were successfully drilled at Block 10, where Lukoil owns 20% and Eni is the operator. Geological resources could total up to 200 million boe. Lukoil has a 25% stake in Block 28, and Eni has a 75% stake as the operator. Work is underway to study the geological material further as part of this project.

Mexico's Imagen de Veracruz publication said on December 22 that the National Hydrocarbons Commission had approved plans by Eni de Mexico to drill the deep-water Nabte-1EXP well at Block 28. Investment under the contract CNH-R03-L01-G-CS-01/2018 is estimated at $66.2 million. The well might reach a depth of up to 4,425 meters.

Eni de Mexico's program will last 82 says, with drilling scheduled for February 13-April 26. Possible resources are 230.4 million boe.

Lukoil and Eni were awarded rights to Block 28 in March 2018. Eni is the project operator with a 75% stake and Lukoil has 25%. The block will be developed on production-sharing terms. It covers an area of 807 square km and the water is 60-600 meters deep.

Lukoil subsequently did not participate in developing Block 14, in which the Russian oil company had acquired a 20% stake from Eni in 2018, deciding instead to concentrate on other projects in the region.

Lukoil closed the deal to join Block 4 shallow-water project for around $700 million in February this year. Commercial production is already under way at an average daily 25,000 barrels. The project is being delivered in three phases, with anticipated output of 115,000 boepd.