Petrofac has been declared the selected bidder on two integrated services contracts by PEMEX. The contracts cover the development of the Magallanes and Santuario blocks in Tabasco State, central Mexico.
Petrofac has committed to an investment of approximately US$ 500 million for a 90% interest in the contract to develop the blocks, while a subsidiary of PEMEX will retain a 10% economic interest in the contract. Petrofac will be reimbursed for 75% of its development expenditure through a cost recovery mechanism and will receive a tariff for each barrel of incremental production.
The blocks each comprise two mature onshore fields that have been operated by PEMEX since the early 1960s, and together have almost 1000 wells of which around 100 are currently producing a total of approximately 14,000 bpd of oil.
Petrofac will provide a fully integrated solution to increase production through the reactivation and development of both blocks and managing their ongoing operation and maintenance.
Andy Inglis, chief executive of Integrated Energy Services, commented, “We look forward to establishing a long and successful relationship with PEMEX, deploying our broad capabilities and technical expertise to improve production on these fields and working to develop local resources in Mexico.”