Pemex awards drilling, rig contracts

Mexico's Petroleos Mexicanos, aiming to boost production at aging fields, has awarded a $687 million oil well drilling contract to a consortium led by Schlumberger.

March 11, 2009

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Mar. 11 -- Mexico's Petroleos Mexicanos, aiming to boost production at aging fields, has awarded a $687 million oil well drilling contract to a consortium led by Schlumberger.

The group, which includes Dowell Schlumberger de Mexico, OFS Servicios, and Drillers Technology de Mexico, will begin drilling 500 wells in the Chicontepec field in April. The contract runs through June 2012.

Pemex hopes to boost output from Chicontepec to 600,000 b/d from 30,000 b/d, with spending plans for the area pegged at more than $2.3 billion this year.

Meanwhile, Diamond Offshore Drilling Inc. said it will start two rig contracts with Pemex in 2009. In late July, the 300-ft Ocean Summit jack up rig will leave the US Gulf of Mexico to start a 476-day contract in Mexico, while Diamond also extended a contract for the Ocean Nugget.

The existing contract, due to expire this month, will last from April through June 2011 following the extension agreement.

Contact Eric Watkins at [email protected].