Hallibuton Wins $98 mln Contract with PEMEX

February 18, 2009

(Dow Jones ) - Oil services company Halliburton Co. won a $98.7 million contract to install offshore oil well components for Mexican state oil monopoly Petroleos Mexicanos, Pemex said Tuesday.

The contract will improve reservoir pressure and optimize drilling results at offshore installations, where Pemex produces 80% of its crude oil.

The contract is scheduled to start on March 13 and last two years. Pemex has a total investment budget of $19.4 billion this year, making it an attractive location for oil services and equipment providers like Halliburton.

Pemex has ramped up spending in recent years in an effort to find and develop new oil fields to compensate for declining production at the giant Cantarell oil field.

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