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Analysis

Time for Carrizo Production

Tue, 01/22/2013 - 13:10

The Carrizo field, which was discovered in Tabasco in 1962, was producing up to 1,200 b/d in the 1990s. However, due to the intrusion of water into oil deposits, Carrizo suffered a steep decline and Pemex decided to abandon the field in 1999. Since then, Pemex has had the ambition to restart production at Carrizo, but due to lack of funds and outdated infrastructure, the NOC has not been able to do so. The 2008 Energy Reform gave Pemex the freedom to associate with private national and international companies under integrated service contracts (ISCs), a new strategy was adopted that allows Pemex to take advantage of the technology of private companies to extract as much oil as possible from mature fields.

Pemex awarded Schlumberger the integrated service contract to restart production at Carrizo. Even though the original winner of the field was Administradora en Proyectos de Campos (APC), with a bid of US$5.03 per barrel, the Mexican company was unable to complete the required legal paperwork according to Pemex, and Schlumberger was awarded the field at their offer of US$9.40 per barrel.

Schlumberger has not begun operations at Carrizo since they are currently focusing on solving multiple on-surface issues, but Schlumberger Country Manager, Juan Manuel Delgado, says the company’s plans for the reservoir are in development and advancing rapidly. However,

Schlumberger wants to make sure the services, resources, and facilities are in place and community interaction is positive before starting production. As a means to achieve this and offer an integrated service, Schlumberger created Schlumberger Production Management (SPM). “We have an enormous amount of knowledge of drilling in Mexico, so all we need now before we begin production is to integrate everything; this organization is dedicated to achieving this,” says Delgado. At the beginning of 2012, Schlumberger signed a cooperation agreement with the British oilfield service company Petrofac, the winner of the contracts for the neighboring Santuario and Magallanes fields, and the company with the most ISC awards in Mexico to date. Petrofac and Schlumberger complement each other very well according to Delgado.

Schlumberger believes that even though Carrizo will present various obstacles and complications, it will also offer great opportunities to apply some of the common technologies that have not yet been brought to Mexico. The company is planning to begin operations in the first quarter of 2013. Delgado is excited about the potential of Carrizo, especially because there are still deeper areas to explore, but the company cannot currently speculate on the potential productivity of the field because “this project will be a learning phase for everyone and because those numbers will depend very much on how the field reacts to our tests and studies,” he explains.