PEP to Invest US$748mn to Drill 250 Burgos Wells in 2006

Mexican state oil company Pemex's E&P subsidiary Pemex Exploración y Producción (PEP) will invest 8bn pesos (US$748mn) in 2006 to drill 250 natural gas wells in the Burgos basin, government news agency Notimex quoted PEP Burgos coordinator Hermilo González as saying.

Investments in the Burgos basin, the largest natural gas deposit in the country, include repairs to some wells still under exploration, González said.

Each new well costs 10mn-20mn pesos depending on the depth, González said.

PEP has reduced the time for drilling a well to 2,000 meters from 15 days to just six, he added.

From 1997 to date PEP has discovered 249 fields and drilled 5,662 wells. At present there are 2,234 wells operating with total production of 1.31 billion cubic feet of natural gas a day, according to González.

The Burgos basin covers 40,294 sq km in Tamaulipas, Nuevo León and Coahuila states in northern Mexico. Tamaulipas accounts for 66.5% of total natural gas production in the Burgos basin, Nuevo León 33% and Coahuila 0.5%, he said.

The Burgos basin supplies 70% of Mexico's total unassociated gas production.

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