ExxonMobil, Agip sign deepwater Gulf of Mexico deal

ExxonMobil Corp. and Agip SPA have entered into an agreement under which Agip will earn from ExxonMobil partial interests in as many as 259 deepwater blocks in the Gulf of Mexico.


ExxonMobil Corp. and Agip SPA have entered into an agreement under which Agip will earn from ExxonMobil partial interests in as many as 259 deepwater blocks in the Gulf of Mexico. Under terms of the agreement, Agip can earn 25% of ExxonMobil's interest in the blocks by participating in the drilling of at least 12 exploration wells over the next 5 years.

The agreement covers about 1.3 million net acres and, according to Agip CEO Luciano Sgubini, "is the largest of its kind to date to be announced in the Gulf of Mexico's deep offshore."

The leases are on the Outer Continental Shelf off Texas, Louisiana, and Mississippi. They extend from the Alaminos Canyon area to Atwater Valley and are in 3,000-8,000 ft of water. ExxonMobil owns 100% interest in about two thirds of the blocks and 50% interest in the remainder.

ExxonMobil Exploration Co. Executive Vice-Pres. John Cousins said, "The deepwater operating environment is challenging but has the potential to contain large undiscovered accumulations of oil and gas. The combined capabilities of ExxonMobil and Agip will result in a very strong partnership to explore this significant potential."

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