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Lukoil and Eni to sign contract on JV in Mexico next week

In March, a consortium of the Russian oil producer Lukoil and Italy’s Eni won Oil and Gas Block 28 located in the Gulf of Mexico during an auction held by Mexico’s national hydrocarbons commission

MOSCOW, October 4. /TASS/. Lukoil and Italy’s Eni will sign the final document on the creation of a consortium to work in Mexico next week, head of Lukoil Vagit Alekperov told reporters on the Russian Energy Week.

"The joint venture comprises four blocks that we and they (Eni - TASS) won at the last tenders. There are no reserves there but these are promising four blocks. Of course, our company is interested in creating such a consortium; we will be operators on one of the blocks and Eni will operate other three. The shares in the JV are being discussed and most likely that the final document on the creation of this consortium will be signed next week, "he said.

Auctions in Mexico

In March, a consortium of the Russian oil producer Lukoil and Italy’s Eni won Oil and Gas Block 28 located in the Gulf of Mexico during an auction held by Mexico’s national hydrocarbons commission.

Lukoil and Eni offered the highest royalty of 65%. A consortium of Dea and Premier offered the same royalty but Lukoil and Eni indicated investments of $59.8 mln vs $14.2 mln offered by Dea. Five bidders participated in the auction for the block.

Earlier Lukoil and Eni also participated in tenders in Mexico. In June of 2017, during the second round, they jointly won licenses for three blocks and one block Lukoil won independently. Alekperov previously estimated investments in the Mexican fields in the amount of $ 250 mln.

About forum

The international energy effectiveness forum Russian Energy Week is held in Moscow’s central exhibition hall Manezh on October 3-6 with the heads of major international energy companies, leading world experts and mass media taking part.