Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Sept. 25 -- Petroleos Mexicanos (Pemex) awarded a $12.4 million contract to Insituform Technologies Inc.’s Mexican joint venture United Pipeline de Mexico de CV (UPM) for construction, replacement, and rehabilitation of about 40 km of pipelines in Mexico’s Chicontepec oil region. Insituform subsidiaries Corrpro Cos. Inc. and Bayou Co. Inc. will provide cathodic protection and field joint coating services for the project.

Insituform expects work on this project to begin in November and to take about 16 months to complete. UPM will oversee new construction, including corrosion protection services, and rehabilitation of more than 24 km of pipeline using Insituform’s proprietary Tite Liner polyethylene lining system. The new and rehabilitated pipelines will transfer Chicontepec oil from wellheads to production facilities.

Insituform acquired Bayou and Corrpro in February and March, respectively.

Analysts previously reported Mexico’s Energy Minister Georgina Kessel saying the country would have to reevaluate its strategy for Chicontepec given production shortfalls. Reports indicated Chicontepec would produce 60,000 b/d of oil by yearend against a previous forecast of 72,000 b/d (OGJ Online, Sept. 8, 2009).

Contact Christopher E. Smith at chriss@ogjonline.com.