Mexican Regulator Welcomes Russian Lukoil Company Plans On One Of Oil, Gas Units - Source

The Mexican National Hydrocarbons Commission (CNH) welcomed the drilling plans of the Russian Lukoil company with regard to one of the oil and gas units in the country, a source in the regulator told Sputnik on Friday.

MEXICO CITY (UrduPoint News / Sputnik - 16th November, 2018) The Mexican National Hydrocarbons Commission (CNH) welcomed the drilling plans of the Russian Lukoil company with regard to one of the oil and gas units in the country, a source in the regulator told Sputnik on Friday.

The company's plans envisage start of the drilling works at the Otomi-Oeste bore hole in fall 2019, which will require some $70 million investments next year.

The block 12, which includes the Otomi-Oeste bore hole, is located in the Cuencas de Sureste basin in the shallow-water part of the Gulf of Mexico.

Lukoil obtained license for the works in the area in 2017.

In early November, Lukoil and Italy's Eni signed an agreement on exchanging shares in blocks 10, 12 and 14 of the Mexican continental shelf. According to the deal, Lukoil assigns 40 percent in Block 12 to Eni, retaining the remaining 60 percent stake, while Eni assigns 20 percent in Block 10 and 20 percent in Block 14 to Lukoil, remaining the operator of both projects.