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Analysis

Pánuco Field Part of Second Rounds ISCs

Wed, 01/25/2012 - 16:41

“We want to be the first Mexican company to win an integrated service contract,” says Luís Vázquez Sentíes, President of Grupo Diavaz. “We have the necessary experience to handle a contract of this nature given the experience we have acquired with the management of the multiple service contract that we are currently handling, and we are certain that we have the know-how both in handling the operation as well as in maintaining the relationship with Pemex to manage a project of this magnitude.”

In January 2012, Pemex released the information on the second round of integrated service contracts. One of the six areas on offer is the Pánuco area, located in Tamaulipas with a total area of 1,839km2. Diavaz has been working a multiple service contract in the region, through its joint venture with Chinese company Sinopec, since 2008. Diavaz hopes that the experience gained in the four years working in the area will be a big help in deciding on a bid price for the contract. Vázquez Sentíes says that the company knows the area, the field, and the best way to handle the field, and has established a very good relationship with Pemex E&P in the region. He also points to the company’s knowledge of the soil and subsoil, thanks to geological and field engineering studies the company has carried out, as well as information obtained from wells in production. Since the Diavaz/Sinopec joint venture started working in the area, the reserve replacement rate has risen to 241%, which contributed to Pemex achieving its 101.5% overall reserve replacement rate in 2011.

One of the biggest challenges for Grupo Diavaz to face if it wins an integrated service contract in 2012 will be becoming an operator, without an international partner, for the first time: until the introduction of the integrated service contracts, Pemex was the only operator working in Mexico, but this has changed under the new contracts. “We are certain that we have the potential, experience and talent to achieve this,” says Vázquez Sentíes. “As a result of the experience gained from the multiple service contract, we have covered the entire value chain. That is why we are so sure that we can be successful as operators. However, we are currently evaluating the advantages of bringing international partners into the service contract bids in order to gain support.”