Petrofac, Schlumberger Selected Bidder By Pemex

June 20, 2012
Following the announcement by Petróleos Mexicanos ('PEMEX'), Petrofac confirms that, together with its partner Schlumberger, it has been declared the selected bidder on the Pánuco integrated production service contract in Mexico. The contract, which runs for 30 years, is expected to be signed in late August 2012 and field operations are expected to start around the beginning of 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.

Petrofac will be reimbursed for 75% of its development expenditure through a cost recovery mechanism and receive a tariff for each barrel of incremental production.  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, contingent on the quantum of remaining undeveloped 2P reserves.

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