Petrofac Wins Arenque Contract, Offshore Mexico
Press Release
28 August 2012
PETROFAC LIMITED
PETROFAC WINS ARENQUE CONTRACT, OFFSHORE MEXICO
Petrofac has confirmed today that Petróleos Mexicanos (Pemex) has declared that it is the selected bidder for the integrated production service contract to develop the Arenque contract area, offshore Mexico.
The Arenque contract area is situated in the Gulf of Mexico, 30 kilometres from the city of Tampico. The Arenque field, which is currently producing around 5,000 barrels per day, has initial oil in place of approximately 1.2 billion barrels with a current recovery factor of around 11%. Under the contract, which runs for 30 years, 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. Petrofac will receive a tariff of US$7.90 for each barrel of incremental production and will be reimbursed for 75% of its development expenditure through a cost recovery mechanism. In the first two years, Petrofac will commit approximately US$50 million in capital expenditure.
Under the bidding guidelines stipulated by Pemex, the contract will generate an estimated backlog figure of US$0.5 billion.
This is the fourth integrated production service contract that Petrofac has been awarded in Mexico since August last year and confirms Petrofac's commitment to the country. The other contracts are for the Magallanes and Santuario fields in Tabasco State, and the Pánuco field in Veracruz State.
Andy Inglis, Chief Executive of Petrofac Integrated Energy Services, commented:
"We are delighted to have been awarded the Arenque contract, which further strengthens our relationship with Pemex and the commitment we have to Mexico to assist in the development of its oil and gas reserves. As well as today's announcement we are also very pleased with the strong start we have made to field operations on Magallanes and Santuario, and the award with Schlumberger of the Pánuco contract."
Ends
For further information contact:
Tulchan Communications +44 (0) 20 7353 4200
Stephen Malthouse
Martin Robinson
petrofac@tulchangroup.com
Notes to Editors
Petrofac
Petrofac is a leading international service provider to the oil & gas production and processing industry, with a diverse customer portfolio including many of the world's leading integrated, independent and national oil & gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC).
Petrofac designs and builds oil and gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac's range of services meets its customers' needs across the full life cycle of oil & gas assets.
With around 17,200 employees, Petrofac operates out of seven strategically located operational centres, in Aberdeen, Sharjah, Woking, Chennai, Mumbai, Abu Dhabi and Kuala Lumpur and has a further 24 offices worldwide.
For additional information, please refer to the Petrofac website at www.petrofac.com.
This information is provided by RNS
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