Russia's Lukoil plans to appraise Mexican offshore discovery in 2025

Russian oil and gas giant Lukoil will begin appraisal of a major oil discovery in block 12 in shallow waters off Mexico's Tabasco state.

Lukoil discovered an estimated 250mn barrels at the Yoti West structure in the block in 2021. The company originally planned to appraise the discovery by drilling a delineation well in 2024.

Citing a lack of drilling equipment, in November the company requested an extension to its appraisal program from Mexico's hydrocarbons regulator CNH, which approved the revised work program on December 13.

It also approved Lukoil's exploration drilling plans for the block.

CNH commissioner José Alfonso Pascual Solórzano Fraga said he was concerned by the lack of equipment in Mexico. "Shortages of drilling equipment are becoming very frequent in our country," he said during the session. "It is delaying many projects and not by one month but by years."

He added, “this looks like it is not something short term, but something more structural that will have to be watched.”

Lukoil in Mexico

Lukoil is one of the largest foreign oil and gas producers in Mexico.

In 2017, the company obtained rights to explore and produce oil and gas in block 12 during one of Mexico's bidding rounds. 

Lukoil has a 60% stake in the block, with the other shareholder being Italy's Eni.

In the adjacent block 10, Lukoil has a 20% stake and Eni is the operator. Eni has made a series of discoveries in the block.

Lukoil also operates the Ichalkil and Pokoch shallow water fields in block 4 off Tabasco and Campeche states.