Production enhancement projects

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Mexico Production enhancement projects

Production enhancement projects

Projects Summary

2011

Start Date

2042

End Date

In August 2011, Petrofac was declared the selected bidder for two integrated services contracts to develop the Magallanes and Santuario blocks in south-central Mexico.

In 2012 we were awarded a further two production enhancement contracts:

Magallanes and Santuario

The Magallanes and Santuario blocks each comprise two mature onshore fields that have been operated by Petroléos Mexicanos (Pemex) since the early 1960s. At the time of the contract award, the fields had almost 1,000 wells, of which around 100 were producing a total of approximately 14,000 barrels of oil per day.

Under the contract with Pemex, we are providing a fully integrated solution to increase production through the reactivation and development of both blocks and management of their ongoing operations and maintenance.

After an initial two-month transition period, we took full responsibility for field operations in February 2012.

Since we started the re-development programme, more than 44 production wells have been drilled, including four horizontal wells – the first on these fields. We are also carrying out a number of significant maintenance and integrity programmes to conserve and enhance the safety, efficiency and environmental security of the assets. Within the first two years of operations we have grown production from the two fields by more than 45%.

Through our field development programme, we identified a number of near-field opportunities, one of which – fault block Santuario 401 – has been appraised to include around 150 million barrels of oil in place, potentially adding another 50 million barrels of production over the life of the contract.

Pánuco

The Pánuco contract area contains four mature onshore fields which were discovered in the early 1900s with the original oil in place of approximately 6.8 billion barrels. At the time of the contract award, the fields had about 1,600 wells, of which around 200 were producing a total of approximately 2,000 barrels of oil per day.

Petrofac and Schlumberger are developing the fields jointly, with Petrofac as the lead Operator. In March  2013, Petrofac and Schlumberger formally took over operatorship of the Pánuco contract area from Pemex.

The first new horizontal well drilled by the joint venture has now been completed and we are currently carrying out a pilot steam injection programme on a number of wells.

Arenque

The Arenque field, which at the time of the contract award was producing around 5,500 barrels per day, has initial oil in place of approximately 1.2 billion barrels with a current recovery factor of around 11%. Petrofac plans to improve the recovery factor and increase production from the core area of the field using horizontal wells and secondary recovery techniques. In addition, there is considerable upside potential in the rest of the block.  

On 1 July 2013, Petrofac took over operations of the Arenque contract area, and a jack-up rig is currently conducting driling on the field.

Production performance

The joint production from Petrofac’s contractual areas currently exceeds 25,000 barrels of oil a day, and we have registered a 55% efficiency improvement in drilling compared to prior performance, ranking us in the top quartile of operators in the region.

To further enhance our performance and drive cost efficiencies, we have partnered with Grupo Alfa and we have jointly established a service company Petroalfa, which brings the external supply chain of contractors and equipment in house.

We are committed to hiring and developing local resources; more than 350 new employees have been recruited, representing a three-fold increase since 2011. Approximately 90% of our current staff are Mexican.

Country Manager

Project Mexico Hernan Mora

Hernan Mora

Country Manager

 

Services provided

Appraisal, development, operations and maintenance of onshore and offshore oil fields.

Location

Mexico Location RHC

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