Project

CONTRACT FOR INTEGRAL EXPLORATION AND EXTRACTION SERVICES, CUITLÁHUAC CONTRACTUAL AREA, IN THE STATE OF TAMAULIPAS.

Sector: Hydrocarbons


Last Update

January 16, 2023
 
Short Name of the Project:
0915 Cuitláhuac Exploration and Extraction Integral Services Contract
Type of Investment:
Brownfield
Subsector:
Upstream
Asset (s):
 Onshore Wells, Oil Field 
Contract Currency:
Mexican Pesos MXN
Estimated Investment MXN:

3,865,729,000

Estimated Investment USD:

187,656,747

Exchange rate (USD/MXN) used by the Ministry of Finance for the economic plan 2023: $ 20.6
Contract Scope:
  Construction,  Operation,  Administration,  Maintenance,  Extraction

DESCRIPTION

The project consists of continuing with the exploitation of hydrocarbons in the Cuitláhuac contractual area, in the producing deposits (Ov 29, 30-60 and 65) and the development of the deep deposit (Ov 80-90).

The Cuitláhuac contract area has an extension of 195.04 km2, it is currently managed by Pemex Exploration and Production (PEP) in the Reynosa Production Asset and is located in the northwestern portion of the Burgos Basin, 44.5 km away to the southwest of the city of Reynosa, Tamaulipas. Includes wells from the Cuitláhuac and Torrecillas fields (with reserves), as well as the René, Orégano and Gomeño fields, which do not have reserves and therefore do not contemplate activity, the producing formations are Jackson and Vicksburg of the Upper Eocene and Lower Oligocene ages respectively, which produce gas with the same characteristics.

The Optimized Development Plan (3P Reserve) considers the current premises where a Comprehensive Exploration and Extraction Services Contract (CSIEE), can be contracted for a maximum of 15 years, the limit for this Business Case is determined at December 2035 in which is estimated to recover an accumulated wet gas production of 218.22 MMMcf equivalent to a sales gas production of 173.82 MMMpc with a line condensate of 3.87 MMb through 33 drilling and completions, 169 RMA, 984 RME, the construction of 33 discharge lines, 3 collection heads that will integrate the proposed Cuitláhuac 13 module to collect the production of 11 locations. It is included also 2 gas pipelines of 6” x 2.2 km with origin in Cuitláhuac 13 and destination in Cuitláhuac 7, for high and low pressure; the acquisition of an ultrasonic transfer measurement equipment to measure the production of Assignment A-0112-M - Cuitláhuac Field that is delivered to the ERG Torrecillas 1, 9 orifice plates for the measurement of wells that are directly connected to the ERG Torrecillas 1, 14 transfer pumps for handling liquids, the expansion of 28 existing pears and the construction of 5 new pears, as well as the abandonment of 242 wells.

LEGAL AND FINANCIAL STRUCTURE

Type of Project
  Public / Private
Type of Contract
  Integral Services
Term
15 years
Selection Process
International Open Tender
Financing Sources
Private
100 %
MXN
3,865,729,000
USD
187,656,747
Payment Source
Project revenues
Percentage of available cash flow, from project revenues after paying taxes, duties and sunk costs.

STATUS

Stage
  Preinvestment
Substage
  Preparation
RELEVANT DATES
Request for proposals/Announcement
March
2023

GEOLOCATION

State(s)
Tamaulipas   

SPONSOR

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Entity
Petróleos Mexicanos
Department
PEMEX Exploración y Producción
Gerencia de Operación de Contratos y Asociaciones Región Norte
Contact
Mario Alberto Vázquez Cruz
E-mail
mario.alberto.vazquez@pemex.com

SUSTAINABLE INFORMATION

PROJECT’S SUSTAINABILITY SUMMARY

The project consists of continuing with the exploitation of hydrocarbons in the Cuitláhuac contractual area, located in Tamaulipas. Comprises clauses for the implementation of social investment plans.

* This summary was prepared based on the methodological framework defined by the Inter-American Development Bank (IDB) in the document entitled: “Attributes and Framework for Sustainable Infrastructure”, which is You can check Here.

Additionally, a brief explanation of the methodology and a summary of the questions applied can be consulted in this Document.

ADDITIONAL INFORMATION

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Source
PEMEX
Description
State owned productive company that participates in all the activities that are part of the productive chain of hydrocarbons, including exploration, production, industrial transformation, logistics, and commercialization of hydrocarbons and derived products.
ID
PEP-CAI-S-GCP-501-91035-22-3
Previous process Desert contest, previous process
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Source
National Hydrocarbons Information Center
Description
It is in charge of promoting and sharing the knowledge of the subsoil to foment the activities of exploration and extraction of hydrocarbons.

REMARKS

The investment amount corresponds only to the capital investment of the project. It does not consider the costs of operation or abandonment that will be expended by the Service Provider. Peso/dollar parity 20.3.

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