UAE oilfield service company Petrofac has announced that it has won an integrated production service contract to develop the Arenque contract area, offshore Mexico
The contract was awarded by state oil company Petróleos Mexicanos (Pemex) and will focus on the Arenque contract area located 30km from the city of
The Arenque field, which currently produces 5,000bpd, has initial oil in place of approximately 1.2bn barrels with a current recovery factor of around 11 per cent. Under the contract, which will run 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 per cent of its development expenditure through a cost recovery mechanism. In the first two years, Petrofac will commit approximately US$50mn in capital expenditure to the project.
This is the fourth integrated production service contract that Petrofac has been awarded in
Andy Inglis, chief executive officer of Petrofac Integrated Energy Services, said, “We are delighted to have been awarded the Arenque contract, which strengthens our relationship with Pemex.”
