Lukoil closed a deal to acquire a 50% operator stake in the Block 4 project in Mexico for $435 million through the purchase of a holding company that owns the operating company, the Russian company said in a statement.

“Approval of the deal from the Mexican authorities was received on February 3, 2022. The deal amounted to $435 million plus actual expenses incurred from January 1, 2021 to the closing date in the amount of about $250 million,” the company said in a statement.
Production at the project began in the fourth quarter of 2021, and the average daily oil production level achieved to date exceeds 25,000 barrels. The project is being implemented in three phases, with a maximum daily production expected of over 115,000 barrels of oil equivalent. Lukoil’s partner in the project is PetroBal, which is part of the Mexican conglomerate GrupoBAL, with a 50% stake.
The Block 4 project includes two plots with a total area of ​​58 sq. km, located on the shelf of the Gulf of Mexico 42 km from the coast, the sea depth in the area of ​​the sites is 30-45 m. Within the sites there are two oil fields – Ichalkil and Pokoch – with recoverable hydrocarbon reserves of 564 million barrels of oil equivalent (boe). ), more than 80% of which is oil.