This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Petrofac And Schlumberger Selected Bidder By Pemex

LONDON, June 19, 2012 /PRNewswire/ --

Following the announcement by Petróleos Mexicanos ('PEMEX'), Petrofac (LSE: PFC) confirms that, together with its partner Schlumberger (NYSE: SLB), it has been declared the selected bidder on the Pánuco integrated production service contract in Mexico. The contract, which runs for 30 years, is expected to be signed in late August 2012 and field operations are expected to start around the beginning of 2013.

The Pánuco Contract Area contains four mature onshore fields operated by PEMEX, and discovered in the early 1900s with original oil in place of approximately 6.8 billion barrels.  The fields have about 1,600 wells of which around 200 are currently producing a total of approximately 1,500 barrels of oil per day.  Petrofac and Schlumberger will develop the fields jointly with Petrofac as the lead Operator.

Petrofac will be reimbursed for 75% of its development expenditure through a cost recovery mechanism and receive a tariff for each barrel of incremental production.  Under the terms of the contract, Petrofac has committed an initial investment of approximately US$17.5 million for the first two years on the Pánuco fields.  For the remaining 28 year period, capex has been committed on a per barrel basis, contingent on the quantum of remaining undeveloped 2P reserves.  

This award demonstrates Petrofac's continued success and commitment to Mexico.  In August 2011, Petrofac was awarded two integrated services contracts by PEMEX to develop the Magallanes and Santuario blocks in central Mexico.  Petrofac successfully completed the transition and assumed operational responsibility for the blocks on 1 February 2012.

Andy Inglis, Chief Executive of Integrated Energy Services, commented:

"I am delighted to develop further our relationship with PEMEX and bring our field management capability to support the development of Mexico's oil & gas resources.  This contract is the first example of our agreement with Schlumberger to work together to deliver integrated and high-value production projects.  I believe that our complementary skill sets and proven execution capability will maximise the potential of these fields for PEMEX."

Notes to Editors

Petrofac

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs