Lukoil and Eni Sign Agreement on Mexico Projects

Russian oil producer Lukoil has signed a farm-out agreement with Italy's Eni on blocks 10, 12 and 14 in the Mexico's shallow waters.

Lukoil will assign 40 percent in block 12 to Eni and retain the remaining 60 percent stake as operator of the project.

In turn, Eni will give 20 percent in blocks 10 and 14 to Lukoil, and remain the operator of both projects.

The new joint ventures will be as follows:

• block 10 - Eni 80 percent (operator), Lukoil 20 percent
• block 12 - Lukoil 60 percent (operator), Eni 40 percent
• block 14 - Eni 40 percent (operator), Citla 40 percent and Lukoil 20 percent

The deal is subject to the approval by the National Hydrocarbons Commission of Mexico.

Blocks 10, 12 and 14 are located in the Sureste Basin in the shallow waters of the Gulf of Mexico. Lukoil and Eni were awarded the licenses for the blocks in 2017 in the result of the licensing Round 2.1.

In March 2018, Lukoil and Eni were awarded rights to Block 28 in the Sureste Basin as the outcome of the licensing Round 3.1. Lukoil received a 25 percent stake, whereas Eni was awarded 75 percent and became the operator of the project.