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Pemex signs exploration and production contract with SMB in Mexico

Published 07 March 2018

Petróleos Mexicanos (Pemex) and the consortium SMB made by Tecpetrol and Grupo R signed a hydrocarbons exploration and extraction contract for the Misión block in Mexico.

The contract has been signed with the purpose of increasing the productivity of the block located in the Mexican states of Tamaulipas and Nuevo León and thus contributing to the improvement of the profitability of the state-owned Productive Company.

At the facilities of the National Hydrocarbons Commission (acronym in Spanish: CNH) the Pemex CEO, Carlos Treviño Medina, assured that Petróleos Mexicanos is currently migrating this kind of contract to strengthen its partnerships and use the flexibility and tools granted by the Energy Reform, which allows the company to enter into partnerships and joint ventures with oil companies that have wide-reaching knowledge and experience in the field.

He explained that the migration of the public works contract related to the Misión asset to a hydrocarbon exploration and extraction contract, will allow Pemex to share the risks and increase the strategic investments to maximize hydrocarbon value, as well as to reactivate exploration activities.

The CEO stated that the Energy Reform opened the doors for Pemex to participate in this kind of partnerships, which allow for the implementation of more robust strategies to assure the future energy reserves for the country and for the company.

This migration, Treviño Medina affirmed, will boost Pemex's profitability in accordance with its Business Plan, and attract more resources for the Mexican State.

Since 2004, the consortium SMB has been executing a public works contract in the Misión block, which contains total 3P reserves of 345 billion cubic feet of gas.

By entering into the exploration and extraction contract, anticipated investments ascend to 637 million dollars, and the production forecast is estimated at a maximum output of 103 million cubic feet of gas per day by 2020.

Source: Company Press Release