Halliburton Goes Gangbusters in Chicontepec

(Blogger's note: It will be made very clear that Halliburton - a virus of a company that nefariously piggy-backs Uncle Sam's dime in the Iraqi War, and under some operations, actually costs the taxpayer more money (than if than if the matter was conducted by the military itself) - is a company not endorsed by the blog. Again, while it shall be stated that Ghawar Guzzler is not a political blog, the blogger never endorsed the Iraqi War, nor the war-profiteers who've gained from it)

Halliburton plans to drill 170 wells in Chicontepec:

Petroleos Mexicanos has awarded Halliburton Co. a $159 million contract to drill 170 wells in Mexico's Chicontepec region, marking the Houston-based company's debut in an area where its main competitors have an established presence.

Pemex, as Mexico's state oil company is known, said the contract will last three years and involve four drilling rigs. Mexico is ramping up activity at Chicontepec to compensate for declining production at the country's traditional oil fields.

Pemex expects Chicontepec to pump 40,000 barrels a day in August and 60,000 barrels a day by the end of the year. At the start of 2009 the company had higher expectations of 70,000 barrels a day on average; it expects over 700,000 bpd by 2017.

- Brewskie

Carlos Slim to Unload Cash on Chicontepec

Two monopolists - Carlos Slim and Mexico's state-owned oil company, Petroleos Mexicanos (Pemex) - are setting their eyes on Mexico's next big oil play, Chicontepec.

From the dudes over at Rigzone:

Mexican tycoon Carlos Slim (telecoms) has set his sights on Chicontepec, an oil project that state monopoly Petroleos Mexicanos is plowing money into despite the price crash.

Slim's Servicios Integrales GSM has attended project meetings and paid bidding fees for a 170-well contract, according to documents on Mexico's Compranet government procurement Web site.

Industry executives expect the unit of industrial conglomerate Grupo Carso SAB to be a main competitor when bids come in on April 7.

[...]

Slim, a telecoms magnate ranked by Forbes magazine as the world's third richest man, has sprawling industrial concerns that rake in profitable government contracts ranging from highways to water treatment plants. At Chicontepec, Pemex plans to invest $11 billion over the next four years, making it an attractive target for drillers struggling with a global industry down cycle.

The upcoming contract is designed to attract smaller companies looking for a foothold at Chicontepec and to give Pemex a more diverse pool of suppliers. The previous two contracts were each for 500 wells, three times as large.

Halliburton, Baker Hughes, and Nabors Industries Ltd., as well as China's Sinopec, are all looking to set up shop at Chicontepec.

[...]

Slim's engineering and construction companies have built offshore platforms and other infrastructure for Pemex. He was even briefly a member of Pemex's board in 2001 under an effort by then-president Vicente Fox to make the state oil monopoly more efficient. Slim and other businessmen named to the board were withdrawn, however, after the move caused an outburst of oil nationalism.

- Brewskie

Mexico Gearing Up for Chicontepec Pay Dirt

Mexico announced plans for a 170-well tender at Chicontepec, a giant oil region that spans three states in northern Mexico. Pemex plans to pump 700,000 bpd from Chicontepec by 2017

From the article:

Pemex said it will pick the winning bid on April 7 with work starting in early May and lasting two years. Pemex often runs into bureaucratic delays in assigning large contracts.

Late last year Pemex announced two Chicontepec drilling tenders, each for 500 wells, that have attracted interest from oil-services giants Schlumberger Ltd. ( SLB), Halliburton Co. (HAL) and Weatherford International Ltd. (WFT).

Mexico's urgent need to bring new oil fields into production has made the country a bright spot for oil-services firms during a year when most oil companies are cutting their investment budgets due to low oil prices.

[...]

Chicontepec is a main pillar in Pemex's strategy to get oil production back above 3 million barrels a day by 2015. Pemex expects to be producing only 72,000 barrels a day at the basin this year despite two years of aggressive drilling. But by 2015 Pemex says Chicontepec will be producing 511,000 barrels a day, or a sixth of total output.

- Brewskie