Lukoil signs agreement to develop oil block in Mexico

MEXICO CITY, Mexico, Sep 26 (PRIME) -- LUKOIL International Upstream Holding, an affiliate of Russia’s oil company Lukoil, has become one of the 10 winners of a tender to develop an offshore oil block in Mexico and signed a 30-year contract with the National Hydrocarbons Commission, the authority said in a statement late on Monday.

The contract may be prolonged for five more years.

The commission’s head Juan Carlos Zepeda said that the winners will have 180 days to present geological survey plans.

Energy Minister Pedro Joaquin Coldwell said that overall investment to implement all tendered projects will amount to U.S. $8.2 billion.

In June, LUKOIL International Upstream Holding won the right to develop one of the 15 auctioned oil blocks on the Gulf of Mexico shelf, a 521 square kilometer block located in the Cuencas del Sureste province, by offering a 75% royalty.

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