ExxonMobil, Agip Petroleum, to drill 12 wells in Gulf of Mexico

Petroleum News Alaska Staff

Exxon Mobil Corp. and Eni, the Italian oil and natural gas company, through its subsidiary Agip Petroleum Exploration Co. Inc., have entered into an agreement covering deepwater blocks in the Gulf of Mexico.

The companies said May 4 that under the agreement, Agip can earn 25 percent of ExxonMobil’s interest in up to 259 deepwater blocks by participating in the drilling of a minimum of 12 exploration wells over the next five years.

Luciano Sgubini, chief operating officer of Eni’s Agip Division, said, “We are very pleased with the conclusion of this agreement which covers approximately 1.3 million net acres (5,200 square kilometers) and is the largest of its kind to date to be announced in the Gulf of Mexico’s deep offshore.” John Cousins, executive vice president of ExxonMobil Exploration Co., said, “The deepwater operating environment is challenging but has the potential to contain large undiscovered accumulations of oil and gas. The combined capabilities of ExxonMobil and Agip will result in a very strong partnership to explore this significant potential.”

The leases are located on the Outer Continental Shelf offshore Texas, Louisiana, and Mississippi. They extend from Alaminos Canyon to Atwater Valley in water depths ranging from 3,000 to 8,000 feet. ExxonMobil owns 100 percent interest in about two-thirds of the blocks and 50 percent interest in the remainder. Drilling is expected to commence later this year with ExxonMobil as operator.