Lukoil Strikes Oil at Block 12

Last week, Russian International Oil Company (IOC) Lukoil reported the discovery of an offshore oil field, located in Block 12 and with a possible reserve of 250MMB. The company discovered the significant resource in the Yoti West-1 exploration well, the first one drilled in the block, 60km off the coast of Tabasco.

In its press release, Lukoil stated that the exploration well was drilled by a Valaris 8505 semi-submersible platform, which drilled a sand reservoir in Upper Miocene sediments. The reservoir has high permeability and effective oil-saturated thickness of about 25m. Lukoil plans to release an assessment plan for the Yoti West field, based on the company’s drilling results.

The Russian IOC obtained the rights for exploration and production in Block 12 in 2017. The block is located in the Gulf of Mexico and spans around 130,000 acres. Lukoil, holding 60 percent of the block, partnered with the Italian oil and gas multinational Eni, which now holds 40 percent. As part of this deal, Eni assigned 20 percent in Block 10 and 20 percent in Block 14 to Lukoil. The two companies furthermore were awarded the rights for Block 28 in 2018 as a result of the 3.1 licensing round. There, Eni holds 75 percent and Lukoil 25.

“Lukoil considers Mexico a strategic region for the development of our international upstream operations. The new project, where we will be the operator, is remarkable due to its considerable explored reserves and significant production potential. It naturally complements our existing portfolio of projects in the Gulf of Mexico," said Vagit Alekperov, President, Lukoil, when the company bought out Fieldwood’s 50 percent stake in Area 4. The Russian company and its partners had already struck oil in August in Block 10, which it shares with Eni.

Lukoil entered the Mexican market in 2015. Since then, the company has been building an ambitious portfolio, despite its divestments in oil and gas production elsewhere in the world. The company celebrated its 30th anniversary on November 29, receiving a message from Russia’s President, Vladimir Putin, for the occasion. “It is largely thanks to the concerted efforts of your large and tight-knit team, consistent introduction of advanced technologies and effective managerial decision that you have managed in the past years to achieve crucial success in oil extraction, processing and sale,” read the message to Lukoil’s employees.