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Lukoil announces second oil finding at block 10 in Mexico

The reserves are estimated at between 150 and 200 million barrels of oil equivalent

MOSCOW, August 2. /TASS/. Russian oil major Lukoil announced a new oil finding in the Sayulita prospecting area of Block 10 offshore Mexico following the drilling of an exploratory well. According to preliminary estimates, the initial geological resources of the new accumulation may contain up to 200 mln barrels of oil equivalent in place.

"The Sayulita-1 EXP well is the second consecutive successful well drilled by the company in partnership with the operator Eni as part of its Block 10 commitments," the company said.

According to the press release, it is located approximately 70 kilometers off the coast and just 15 km away from the previous oil discovery of Saasken (2020) that will be appraised toward year-end.

The drilling area’s water depth is 325 meters and the final well depth is 1,758 meters subsea level.

The reserves are estimated at between 150 and 200 million barrels of oil equivalent.

The previous oil finding was made in February this year, when the found reserves were estimated at up to 300 million barrels.

Lukoil entered Block 10 in November 2018. The Russian company owns 20% in this joint venture, Eni (operator) - 65%, British Capricorn - 15%.

The Russian company also participates in several other Mexican projects both independently and jointly with Eni. In March 2018, Lukoil, as part of a consortium with Eni, won the right to conclude a contract on Block 28. Lukoil's share in the consortium will be 25%, Eni (operator) will hold 75%. The block is located on the shelf of the Gulf of Mexico at a depth of 20 to 500 m.

In 2015, Lukoil in Mexico entered the development project of the Amatitlan block. Prior to that, in January 2014, Lukoil entered into a cooperation agreement with the Mexican company Pemex, which laid the foundations for the two companies to work together in oil exploration and production.