Lukoil Touts Find Offshore Mexico
The Yoti West-1 encountered oil in upper Miocene-aged sands.
Lukoil has struck Miocene-aged oil sands with its Yoti West exploration well in Block 12 offshore Mexico. The initial oil in place is estimated to be around 250 million bbl. The Yoti West-1 EXP well was drilled 60 km offshore by the Valaris 8505 semisubmersible drilling rig. The well penetrated a sand reservoir in Upper Miocene sediments with high permeability and effective oil-saturated thickness of about 25 m. An assessment plan for the field will be developed based on this and future drilling results.
Lukoil Upstream Mexico is the operator and holds a 60% working interest in the block. Partner Eni holds the remaining 40% stake.
Two successful exploration wells were previously drilled at Block 10 offshore Mexico where Lukoil owns 20% and Eni is the operator. The resource base of the block is currently being assessed based on drilling results.
In July, Lukoil agreed to acquire the 50% operator interest held by Houston-based Fieldwood Energy in Mexico’s Area 4 offshore shallow-water project for $435 million, plus 2021 expenditures incurred up to the closing date of the transaction. Area 4 includes two blocks, 58 km2 in total, located 42 km offshore in water depths of 30–45 m. The Ichalkil and Pokoch oil fields within the blocks have recoverable reserves of 564 million BOE, of which 80% is crude oil.