Schlumberger Oilfield Services and ICA Fluor Daniel on Thursday were awarded the largest ever integrated oilfield services contract in Mexico for work in the Chicontepec reservoir. The $500 million contract to recover natural gas, along with light and heavier oil in the reservoir spans four years.

The consortium’s contract includes field studies, drilling, well completion and intervention services, surface infrastructure, and production facilities development in the Chicontepec onshore oil field for Petroleos Mexicanos Exploration and Production (Pemex E&P). The field is located 250 miles northeast of Mexico City in the states of Veracruz and Puebla. Considered one of Mexico’s largest proven reserves, the Chicontepec area is formed by a paleochannel reservoir discovered in 1925.

“This contract builds upon numerous successful projects in Mexico, and strengthens our business alliance in the country,” said Jose Magela Bernades, general manager, Mexico GeoMarket, Schlumberger. “For the first time, a service company will directly collaborate with Pemex on the field development plan under an integrated service concept.” Its partner ICA Fluor Daniel, based in Mexico, is a partnership of Fluor Corp. and Empresas ICA Sociedad Controladora, an industrial engineering firm.

The initial stage of large-scale development planned for Chicontepec includes a field study of several blocks, drilling 200 wells and completion of 50 additional wells. This phase also includes optimizing the production facilities installed around the reservoir; reduction of operations and maintenance costs; integration of production installations using reservoir energy efficiency; construction of multi-well drilling pads; using recycled gas for pneumatic pumps; and minimizing environmental impact. New field studies also will be conducted when Pemex wants to further develop the Chicontepec field.

Up to 250 wells will be completed and fractured by the consortium, which also will establish the production regime and injection strategies. The contract also includes providing manned rigs, and all associated surface facilities and required infrastructure, such as pipelines, compression and storage.

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