Eni and Lukoil have signed a farm-out agreement for the transfer of participating interests in three exploration licenses in the shallow waters of Mexico.
Under the terms of the agreement, Lukoil will acquire 20% stake in the production sharing contracts (PSC) from Eni in both Area 10 and Area 14.
On the other hand, Eni will acquire a 40% stake in Lukoil’s production sharing contracts for Area 12.
Eni said in a statement: “The objective of the deal, in light of the close proximity of the blocks, is to diversify the exploration risks, accessing wider opportunities and increasing mutual operational synergies.”
The transaction will result in Eni owing 80% stake in Area 10, while Lukoil will hold 20%. For Area 12, the stakes of Eni and Lukoil will be 40% and 60%, respectively.
In Area 14, Eni, Citla and Lukoil will own 40%, 40% and 20%, respectively.
The agreement is subject to the approval by the Mexican authorities.
The blocks were awarded to Eni and Lukoil in 2017 in an international competitive bid round called “Ronda 2.1”, issued by the National Hydrocarbon Commission (CNH).
The exploration drilling campaign on the blocks is planned to begin as early as mid-2019.
Following the approval of swap agreement by the Mexican authorities, Eni will hold rights in seven exploration and production offshore blocks that include Area 1, Area 7, Area 10, Area 12, Area 14, Area 24 and Area 28.
In October, Eni signed an agreement with Sonatrach to acquire a stake of 49% across three oil concessions in the onshore North Berkine basin in the Algerian desert.
The three blocks located in the North Berkine basin that are part of the agreement are Sif Fatima II, Zemlet El Arbi and Ourhoud II in which the Algerian state-owned oil and gas firm Sonatrach will retain a stake of 51%.
The transaction will be based on approval from the Algerian authorities.
By taking part in the three licenses, which are spread over a total area of 8500km2, Eni will be consolidating its position in the North Berkine basin further.