Russia's Lukoil makes new oil discovery offshore Mexico
Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here
X

Lukoil makes new oil discovery offshore Mexico

24 Nov 2021 (Last Updated November 24th, 2021 11:13)

According to preliminary estimates, the discovery’s initial oil in place is 250 million barrels.

Russian independent oil firm Lukoil has made oil field discovery within the Yoti West structure at Block 12 offshore Mexico.

The field was discovered following the drilling of the first exploration well, Yoti West-1 EXP. It was drilled using the Valaris 8505 semi-submersible rig.

According to preliminary estimates, the discovery’s initial oil in place is 250 million barrels.

Following the drilling, the Yoti West-1 EXP well encountered a sand reservoir in Upper Miocene sediments featuring high permeability and effective oil-saturated thickness of 25m.

Based ​on drilling results, Lukoil plans to develop an assessment plan for the Yoti West field.

The firm previously said that the drilling its first exploration well was focused on turbidite deposits of Upper and Lower Miocene.

In a press statement, Lukoil earlier said: “Drilling of the Yoti West-1Exp will provide geological and geophysical data needed to make a decision on further exploration of Block 12.”

Covering an area of 521km², Block 12 is operated by Lukoil subsidiary Lukoil Upstream Mexico with a 60% stake while the remaining stake is held by Eni.

The Valaris 8505 semisubmersible rig was moved to the Yoti West-1Exp well following completion of work on the Sayulita-1 EXP well in Block 10.

Blocks 10, 12, and 14 are situated in Sureste Basin in the shallow waters of the Gulf of Mexico.

Last month, Lukoil signed a $2.25bn deal to acquire an additional 15.5% stake in the Shah Deniz natural gas project in the Azerbaijan sector of the Caspian Sea from Petronas.

The deal increases Lukoil’s interest in the project to 25.5% from the existing 10%.

Located 70km south-east of Baku, the Shah Deniz gas condensate field produced 18.1bcm of gas and 3.6 million tonnes of gas condensate last year.