PEMEX to Allocate US$67 million for New Wells

CNH authorized the drilling of two wells in the Mexican Gulf and decided that PEMEX International (PMI) is the new marketer for oil contracts.

The commission granted PMI the right to commercialize hydrocarbons that the state obtains as a result of the exploration and extraction contracts that were previously granted to the private sector and PEMEX under the new legal and fiscal regime, reported Forbes.

The new contract took effect after CNH ended its obligations with Trafigura on Oct. 22. According to Forbes, the previous contract was valid from December of 2017 to December 2020 and it was granted to the Singapore company due to the constitutional changes that were promoted during Peña Nieto’s presidency, which opened the energy sector to private companies.

According to CNH, the contract that will come to an end with Trafigura is the result of the amendment to Art. 54 of the Law on Allocations, Leases and Public Sector Services, which establishes the opportunity to terminate a contract due to the general interest or a possible damage to the Mexican State, reported Forbes.

CNH said PMI is the company that guarantees better market conditions for the country. It offered a pure marketing fee of US$0.12 per barrel of crude oil and US$.020 per million BTU. The duration of the contract is expected to be five years, reported Forbes.

Moreover, CNH authorized the drilling of the wells Saap-1 EXP and Copali-1EXP in the Mexican Gulf waters. According to Forbes, PEMEX will invest US$67 million for the exploration and production of these wells.

For the first well, PEMEX will allocate US$37.2 million. US$26 million will be used for perforation activities and US$11 million for the tamponade of the 0152- Uchukil assignment. The activities will last 56 days and the company projects an oil potential of 23 million barrels of crude oil with a 30 percent probability of geological success.

For the Copali well, PEMEX will invest US$30 million. US$21 million will be used for drilling activities and US$9.8 million for the completion of the 0148-Uchukil assignment. The activities will last 71 days and PEMEX forecasts an oil potential of 23 million barrels of crude oil with a 36 percent probability of geological success.