Eni, Lukoil Agree Mexican Farmout

Italy's Eni and Russian independent Lukoil said November 6 they have signed a farm-out agreement relating to Mexican offshore blocks 10, 12 and 14.

Lukoil is to assign a 40% interest in Block 12 to Eni, while retaining the other 60% and operatorship itself. Eni is to assign 20% in block 10 and 20% in block 14 to Lukoil, again retaining operatorship. Both transfers are subject to the regulatory approval by Mexico's National Hydrocarbons Commission. Eni will then have 80% of block 10, and 40% of block 14 alongside local partner Citra (also 40%). The three blocks are in the promising Sureste Basin in the shallow waters of the Gulf of Mexico and were awarded in 2017 under licensing Round 2.1. Eni said that exploration drilling there is planned to start as early as mid-2019.

In March 2018, Eni and Lukoil were awarded rights for block 28 in the Sureste Basin under licensing Round 3.1; Eni became operator with a 75% interest while Lukoil received a 25% stake.  

Once the swap agreement is approved, Eni says it will hold rights in seven exploration and production blocks all offshore: 100% of block 1, 45% of block 7, 65% of block 24, plus the four already listed above. The only one of the seven that Eni will not operate is block 12.