Project Profile
Value: US$17.5 million (for the first two years)
Location: Onshore Mexico
Reserves: 6.8 billion barrels of oil
Production: 1,500 barrels of oil per day
Petrofac is expected to sign a 30-year contract with Petróleos Mexicanos in August 2012 that will see it and its partner Schlumberger deliver production services to the Pánuco project, onshore Mexico. Petrofac confirmed that it and Schlumberger had been declared the \'selected bidder\' on the Pánuco integrated production services contract, in which field operations are expected to begin in 2013.
The Pánuco Contract Area contains four mature onshore fields operated by PEMEX, and discovered in the early 1900s, with original oil in place of approximately 6.8 billion barrels. The fields have about 1,600 wells, of which around 200 are currently producing a total of approximately 1,500 barrels of oil per day. Petrofac and Schlumberger will develop the fields jointly with Petrofac as the lead operator. Under the terms of the contract, Petrofac has committed an initial investment of approximately US$17.5 million for the first two years on the Pánuco fields. For the remaining 28-year period, capex has been committed on a per barrel basis. Petrofac will be reimbursed for 75 percent of its development expenditure via a cost-recovery mechanism.
Operators:
Petrofac: Operator
Schlumberger