COPFs and CIEPs Contract MigrationsWed, 01/18/2017 - 13:40
Q: How are PEMEX's plans for contract migrations progressing?
A: Of the 22 service contracts, three are located in the south, six in Chicontepec, two outside of Chicontepec, one in the north in shallow waters and the rest in the Burgos Basin. We decided to migrate the oldest ones first, which we signed with the UK company Petrofac. The company had four CIEP contracts: Santuario, Arenque, Magallanes and Pánuco. In the Pánuco contract, Petrofac shared a 50 percent interest with service company Schlumberger. Around a year ago, Petrofac sold 50 percent of its share to Schlumberger so now, although the Pánuco block is still run by Petro-SPM, it is 100 percent owned by Schlumberger. We decided to move forward with the other migrations, starting with Santuario. Our board has approved the finalized migration.
The second contract to be migrated will be the Burgos Basin’s Misión block, which is under a COPF contract with Argentinian company Tecpetrol. We have finalized the share of this contract, with 51 percent going to PEMEX and 49 percent to Tecpetrol. We are waiting for its board to approve the conditions already approved by PEMEX’s board. We expect to migrate Misión in the coming months. Migrating the Santuario block will facilitate this process, because we have learnt and are improving as we go.
The third contract to migrate will be Ebano, which is operated by Grupo Diavaz. Petrofac’s remaining blocks, Arenque and Magallanes, will follow. Arenque is an offshore shallow-water field but Petrofac has declared that its expertise is more focused on onshore. If it can find a company to take the risk of that offshore field, Petrofac could sell its share and stay on as a service company. For the rest, we are working on three CIEP blocks in Chicontepec and we have another three that have to comply with the initial two-year work commitment before we can migrate them. We have offered a grace period for this.