Pemex to Offer Blocks in Two More Natural Gas Areas

  • The authorized investment for this project will reach NP $200,000MM (~$20B US)
  • The new bid rounds are planned to create more infrastructure in common with the US

  • The Burgos Integrated Project Group disclosed that Pemex is prepared to offer two additional gas-prone areas for exploration and exploitation by multi-national companies through the Multiple Service Contracts developed by the Secretary of Energy.

    The potential geologic areas available for leases that would extend until the year 2018 are the Sabinas Basin and Piedras Negras area. These areas located in the states of Coahuila, Tamaulipas and Nuevo León and would complement the Burgos basin which has been open to bid rounds for the past year or so under the Multiple Service Contract arrangements.

    The investment authorized for the project for the production stage until 2018 would be about NP$200,000 MM ($20 Billion US) and will create more than 16,000 jobs.

    The goals for the period 2004-2018 include the acquisition of 26,000 square km of 3D seismic covering the three state area, drilling of more than 6,000 wells and construction of almost 10,000 km of gas pipelines and 12,000 km of roads.

    There are already plans this year for acquisition of 5,424 square km of 3D seismic and 3,683 km of 2D seismic to define the potential of the Sabinas and southern Burgos basins. There have been important exploratory successes in this region (Forastero and Pirneo wells, Rigzone March, 4 2004) showing the remaining up-side potential of the Sabinas basin and the southward extension of the productive Burgos basin.

    The anticipated bid rounds for the newly available basin areas are expected to extend the productive area of the basin by 50 to 100 square km and to significantly increase the pipeline connections between Mexico and the United States.

    Pemex currently has eight terminals for natural gas import and export along the U.S. border. These include Naco in Sonora State, Piedras Negras in Coahuila State, two in Reynosa along with two in Arguelles, both in Tamaulipas State as well as terminals in Juarez City and Samalayuca in Chihuahua State.

    Additional objectives of the integrated Burgos basin initiative according to the Energy Secretary are to eliminate bottle-necks in gas distribution and to improve the understanding of existing fields in order to reduce exploratory risk as well as to maintain production growth.

    Eight BCF of natural gas have been produced from 207 fields discovered to-date and some 4840 wells have been drilled in the Burgos-Sabinas-Piedras Negras area. The Burgos area is geologically similar to the adjacent portion of southern Texas where by comparison over 80,000 wells have been drilled and gas production is roughly ten times greater than what is produced in Mexico.

    For a complete analysis of the Sabinas Basin including well logs, 2004 Pemex plans, and more visit