PJSC Lukoil agreed to acquire the 50% operator interest in the Area 4 project offshore Mexico owned by Fieldwood Energy LLC, Houston, which entered bankruptcy in 2020.
The Russian company will acquire Fieldwood’s holding company in a transaction valued at $435 million plus expenditures incurred in 2021 as of the transaction completion date, which is subject to conditions, including approval by Mexican authorities, the company said in a statement July 5.
Area 4 includes two blocks totaling 58 sq km, which lie 42 km offshore Mexico in the Gulf of Mexico in 30-45 m water. Oil fields Ichalkil and Pokoch lie within the blocks in the Bay of Campeche. Estimated recoverable hydrocarbon reserves of the fields are 564 MMboe (over 80% crude oil).
Production infrastructure construction is being finalized, and first oil is expected in this year’s third quarter. The project is being developed in three phases under a 25-year production sharing agreement signed in 2016 with an optional extension of up to 10 years. Estimated peak daily production is over 115,000 boe.
PetroBal, the oil and gas subsidiary of GrupoBAL, holds the remaining 50% interest.