Pemex Calls 170-Well Chiconepec Drilling Tender

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Published at: www.rigzone.com

Michael LynchConsultantMichael E. Lynch

Pemex struggles to remain in the ranks of oil exporters

March 2, 2009

Rigzone Newsletter quoted a Dow Jones Newswire of February 24, 2009 in which Petroleos Mexicanos announced a 170-well tender for the Chicontepec oil region. the company expects to produce 700,000 bbl/day by 2017. Chicontepec spans three states in northern Mexico. It is an aggressive effort to help offset declining oil rates. The winning bid will be picked on April 7. Work will start in May and last two years. In 2008, Pemex put out two tenders, each for 500 wells. Bidders included Schlumberger, Halliburton and Weatherford. Mexican oil production is delining 9%/year which, if continued, will end exports in six years. Chicontepec forms a main part of the strategy to bring oil production back above 3 million bbl/day by 2015. In that year, Chicontepec will be producing 511,000 bl/day. Many observers think it will be difficult to meet this schedule. A Chicontepec well will currently produce only a few hundred bbl/day. even with steady drilling, the area now produces only 72,000 bbl/day.