OREANDA-NEWS The National Commission on Hydrocarbons of Mexico (CNH) has approved the work program and annual budget of the Fieldwood Energy project in relation to the contract for two fields on the shallow shelf of the Gulf of Mexico.

Interfax writes about this with reference to the Mexican Association of Oil and Gas Companies (AMEXHI).

The project budget will be $539 million. The contract block includes two sites with a total area of 58 sq. km on the shelf of the Gulf of Mexico, where the Ichalkil and Pokoch fields are located with recoverable hydrocarbon reserves of 564 million barrels of oil equivalent, more than 80% of which is oil.

Production under the project started in the IV quarter of 2021. The average daily level of oil production today is about 100 thousand barrels, gas — 197 million cubic feet. The maximum daily production of over 115 thousand barrels of oil equivalent is expected to be achieved this year.

LUKOIL owns 50% in the project after the company closed a deal in February 2022 to acquire the holding company that owns the operator company - Fieldwood Mexico B.V. — for $700 million. LUKOIL's partner is PetroBal oil and gas company (part of the Mexican conglomerate GrupoBAL) with a 50% stake.

The production sharing agreement for the project, signed in 2016, is designed for 25 years and assumes the possibility of its extension for up to 10 years.