Lukoil Buys into Congo-Brazzaville Project

Lukoil announced June 7 that it has agreed to buy a 25% stake in the Marine XII licence in the Republic of Congo.

The Russian company will pay African independent New Age $800mn in cash for the interest. Eni is the operator of Marine XII with a 65% stake. Congolese state company Societe Nationale des Petroles du Congo holds 10%. The transaction is subject to customary conditions, including the approval by the government of the Republic of Congo.

The Marine XII licence covers 571 km² and sits 20 km off the coast in seas of 20-90m. Its five discovered fields contain 1.3bn boe of proved and probable (2P) reserves. Two fields, Nene and Litchendjili, were launched in 2015 and currently produce 28,000 barrels/day of oil and gas condensate and 1.7mn m³/d of gas.

"Entering this project is in line with our M&A strategy,” said Lukoil president Vagit Alekperov. “The project is characterised by explored reserves, substantial production growth potential, access to well-developed infrastructure and it also fits our technological expertise. On top of that, the project is already free cash flow positive. We are also pleased to expand our partnership with Eni, which is well-experienced in international offshore projects and known for its successful footprint in the region.”