Petrofac wins Mexico contract
Oil and gas services firm Petrofac said it had won a contract to develop the Arenque contract area, offshore Mexico.
Oil and gas services firm Petrofac said it had won a contract to develop the Arenque contract area, offshore Mexico.
The firm said the Arenque field, which is currently producing around 5,000 barrels per day, had initial oil in place of approximately 1.2bn barrels with a current recovery factor of around 11%.
Under the contract, which runs for 30 years, Petrofac plans to improve the recovery factor and increase production from the core area of the field using horizontal wells and secondary recovery techniques.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In the first two years, the company will commit approximately $50m in capital expenditure.
In return Petrofac will receive a tariff of $7.90 for each barrel of incremental production and will be reimbursed for 75% of its development expenditure through a cost recovery mechanism.
The company said the integrated production service contract, the fourth such deal Petrofac has been awarded in Mexico since August last year, confirmed its commitment to the country.
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published