Wednesday, August 22, 2007

Pemex Expects Chicontepec Output of 470,000 bpd

Pemex Expects Peak Chicontepec Output of 470,000 bpd
BNamericas 8/22/2007

Mexican state oil company Pemex expects its Chicontepec oilfield in Veracruz and Puebla states to reach peak production of 470,000 bpd in 2014, newspaper El Norte reported, citing Pemex sources.

The field produced 23,000 bpd in the first six months of 2007, but Pemex is hoping the field will ultimately help offset the natural decline of the Cantarell field, which produces roughly half Pemex's crude output.

With this goal in mind, Pemex aims to invest 164bn pesos (US$14.7bn) in Chicontepec in 2008-17, with annual investment hitting a peak of 26.2bn pesos in 2011.

The first five years of investment are expected to total 114bn pesos, with the second five years reaching 48.8bn pesos.

A consortium led by US oilfield services company Schlumberger (NYSE: SLB) won the first Chicontepec service contract in 2003, which initially featured a 200-well drilling program. Schlumberger recently signed a US$1.4bn contract for the drilling of 500 wells on the field.

Pemex estimates Chicontepec has probable reserves of 8.70 Bboe, the paper reported.

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