Lukoil expands portfolio with Congo acquisition

Lukoil is to aquire New Age’s 25% interest in the Marine XII licence on the Republic of Congo’s continental shelf for $800mn. The licence covers five discovered fields containing 1.3bn boe of proved and probable (2P) reserves, according to an international independent auditor. Two fields, Nene and Litchendjili, launched in 2015, currently produce 28,000 b/d of oil (mainly light and low-sulphur) and gas condensate, and 1.7mn cm/d of marketable gas.

Eni is the project's operator, holding a 65% stake. State company Société Nationale des Pétroles du Congo holds a 10% interest.

Commenting on the news, Jean-Baptiste Bouzard, Senior Research Analyst at Wood Mackenzie, notes: ‘The transaction adds production for the first time to Lukoil’s West African portfolio, and fits with the Russian company’s aims of developing its offshore expertise and grow its presence outside its Russian stronghold. For New Age, the sale will free up resources to focus on Etinde in Cameroon, and replenish its exploration portfolio.’

In other news, Lukoil President Vagit Alekperov and Chairman of the Management Board of KazMunayGaz Alik Aidarbayev have signed a heads of agreement on the I-P-2 block located in the Kazakh sector of the Caspian Sea. The countries will now focus on concluding a contract for hydrocarbon exploration and production and create a joint venture in charge of operations on the block.