In early 2012, Petrofac became the first foreign company to operate state oil fields in Mexico for more than 70 years when we were awarded two integrated services contracts by Petróleos Mexicanos (PEMEX), Mexico's National Oil Company, to develop the Magallanes and Santuario blocks.
We’ve worked hard to run our operations responsibly, invest in Mexican communities, engage openly and ensure that local cultural heritage is preserved.
Our operations in Mexico include:
As part of the ongoing energy reforms in Mexico, our focus has been on working with our client PEMEX, our partners and Mexico’s regulators to migrate our Production Enhancement Contracts (PECs) into equity Production Sharing Contracts (PSC)s – because, if we have a direct equity interest in the reserves, we receive an increased incentive to develop the assets.
In December 2017, we completed the migration of the Santuario PEC into a PSC. This was the first contract migration in Mexican history. We are committed to unlocking value in the Santuario block and are progressing approval of a new field development plan in conjunction with our partner PEMEX.
We are working to migrate the Magallanes and Arenque PECs to PSCs which we aim to complete by the end of 2018.