Pemex awards Schlumberger, ICA Fluor Daniel $500 million Chicontepec contract

March 18, 2003
Petroleos Mexicanos (Pemex) has awarded Schlumberger Oilfield Services and ICA Fluor Daniel a $500 million contract to recover natural gas and oil in Chicontepec field.

By OGJ editors
HOUSTON, Mar. 18 -- Petroleos Mexicanos (Pemex) has awarded Schlumberger Oilfield Services and ICA Fluor Daniel a $500 million contract to recover natural gas and oil in Chicontepec field.

This represents the largest integrated services contract ever awarded in Mexico, Schlumberger Oilfield Services said. ICA Fluor Daniel is the Mexico-based partnership of Fluor Corp. and Empresas ICA Soc. Controladora.

Chicontepec is in east central Mexico in the Tampico-Misantla basin. It covers an area of 11,300 sq km. The productive area is a 3,300 sq km oval in the southeastern part of the basin (see map, OGJ, Aug. 30, 1982, p. 100).

The consortium will handle field studies, drilling, well completion and intervention services, surface infrastructure, and production development in the field 250 km northeast of Mexico City in Veracruz and Puebla states.

Representing one of Mexico's largest proven reserves, Chicontepec was discovered in 1925, and OOIP is 17 billion bbl, Pemex has said previously. Last year, Pemex revised downward the estimate of its 2000 proved crude oil and natural gas reserve base to comply with the US Securities and Exchange Commission filing guidelines. The adjusted totals were calculated to be lower by 6.755 billion bbl of oil, condensate, and natural gas liquids, and by 2.334 billion boe of dry gas.

According to Fitch Ratings, the revised volumes, which center in Chicontepec, "reflect the SEC's definition of proved hydrocarbon reserves to include the certainty that they will be developed in the short term, assuming existing technology and economic conditions" (OGJ, Sept. 23, 2002, p. 28).

Regarding the recent contract, Jose Magela Bernades, general manager, Mexico GeoMarket, Schlumberger Oilfield Services, said, "For the first time, a service company will directly collaborate with Pemex on the field development plan under an integrated service concept."
The Austin chalk of Texas is perhaps the closest geologic analog to Chicontepec because both are relatively shallow. The new project will address production from turbidite deposits in paleochannels.

The initial stage of large-scale development for Chicontepec will comprise a field study of several blocks, drilling 200 wells, and completion of 50 additional wells. These will be vertical wells.

The phase also includes optimization of production facilities around the reservoir, reduction of operations and maintenance costs, integration of production installations, construction of an undisclosed number of multiwell drilling pads that will each accommodate 18 wells each, use of recycled gas for pneumatic pumps, and minimizing environmental impact.

New field studies also will be conducted where Pemex wants to further develop Chicontepec field. The consortium will complete and fracture 250 wells, and it will establish a production regime and injection strategy.