Lukoil to acquire a 50% operator stake in the Area 4 project in Mexico, the transaction value is $435 mln

Moscow, July 5 - Neftegaz.RU. Lukoil announced today that the company has entered into an agreement to acquire a 50% operator interest in the Area 4 project in Mexico through the acquisition of the operator’s holding company.
The transaction amount is $435 million plus expenses actually incurred in 2021 as of the closing date of the transaction.

Area 4 includes 2 blocks, 58 sq.km in total, which are located 42 km offshore Mexico in the Gulf of Mexico.
The sea depth at the blocks is 30-45 m.
The project contains 2 oil fields:

• Ichalkil
• Pokoch

The fields' recoverable hydrocarbons reserves are estimated at 564 million barrels of oil equivalent, of which over 80% is crude oil.
Vagit Alekperov, President of LUKOIL, said:

• LUKOIL considers Mexico a strategic region for the development of our international upstream operations
• The new Project, where we will be the operator, is notable due to its considerable explored reserves and significant production potential
• It naturally complements our existing portfolio of projects in the Gulf of Mexico

Production of 1^st oil at the project is scheduled for the 3^rd quarter of 2021.
The Project is developed in 3 phases, with a peak daily production rate estimated to be more than 115 000 barrels of oil equivalent.

The Project is implemented under a PSA, which was signed in 2016 for a period of 25 years with the right for an extension for up to 10 years.