TOKYO – INPEX Corp. subsidiary Teikoku Oil (North America) Co. Ltd. has acquired an additional participating interest in the Lucius deepwater US Gulf of Mexico project. Following this acquisition and the interim redetermination of equity ownership by the project partners, INPEX's participating interest in the Lucius project stands at 7.75309%.
INPEX's increased participating follows Apache Corp.’s decision in May to sell its participating interest in the project, amounting to 11.669%, to Freeport-McMoRan Oil & Gas. In accordance with the Lucius unit operating agreement (UOA), Apache opened its sales offer to all interest holders.
INPEX and other interest holders exercised preferential rights, dividing Apache's interest between the three companies by the ratio of their participating interests.
The Lucius project, which includes portions of Keathley Canyon blocks 874, 875, 918, and 919, is 380 km (236 mi) southwest of Port Fourchon, Louisiana, in 2,160 m (7,087 ft) of water. The Lucius partners made a final investment decision to develop the project in December 2011. Development work is ongoing, and production is scheduled to begin before year’s end.
To date, INPEX has been involved in several oil and gas projects in the shallow waters of the US Gulf of Mexico, and also participates in exploration and production activities in deepwater Walker Ridge blocks 95/96/139.