Mexico’s state-owned oil and gas company has awarded new contracts for 20 offshore rigs under a project to expand production in the Gulf of Mexico. Once they are completed in 2006, Petroleos Mexicanos (Pemex) is forecasting that the project will contribute nearly 1.5 million bbl/d of crude production and 1.4 Bcf/d of natural gas output.

The program overall calls for 47 rigs and 56 pipelines that will extend 600 kilometers. Pemex said the new rigs would increase output at its Ku-Maloob-Zaap, Marine Light Crude and Lankahuasa fields offshore. Pemex currently produces 3.4 million bbl/d of crude oil and 4.6 Bcf/d of gas.

Eighteen of the first 20 contracts were awarded to Mexican construction companies. Between now and the end of this year, Pemex expects to award contracts for four production and compression rigs, 10 drilling rigs, seven accommodation rigs and two well recovery rigs.

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