Lukoil to seal deal with Eni on Mexican Gulf JV next week, eyes new projects in West Africa
Russia's Lukoil expects to ink a final agreement with Italy's Eni on joint exploration work offshore the Gulf of Mexico next week, and the two companies are negotiating cooperation in West Africa, Lukoil CEO Vagit Alekperov said Thursday.
Lukoil and Eni are planning to cooperate to reduce investment risks on four blocks in the Gulf of Mexico that they won licenses for in recent tenders. Lukoil will be operator on one, and Eni the operator at the remaining blocks, Alekperov told reporters on the sidelines of Russian Energy Week.
"Most likely, a final agreement on establishing the consortium will be signed next week," he said.
In March, Lukoil in partnership with Eni won the right to explore Block 28 in the Cuencas del Sureste basin of the Gulf of Mexico, during the round 3.1 shallow water auction. Eni owns a 75% stake in the license, with Lukoil holding the remaining 25% in the block, estimated to contain 100 million barrels of oil equivalent.
Lukoil also won the right to explore Mexico 's Block 12, which is thought to hold 409 million boe in the same basin last year, with Eni owning several other licenses in the region.
The two companies may also cooperate on a project in West Africa, he said, without elaborating further.
Lukoil is still interested in West Africa despite drilling a number of dry wells there, Alekperov said, adding that the company "gained valuable experience through that drilling."
"We are considering new projects in West Africa," he said, adding that the company also has an option to take a 45% stake from Chevron in Block 132.
Lukoil is already working on a project with Chevron in Nigeria where the two found commercial crude reserves in 2015. Alekperov previously expressed interest in additional assets in Nigeria during a trip to the country.
source: S&P Global Platts
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