Pemex to Offer Eight Burgos Basin Blocks

Pemex will offer eight blocks in the Burgos Basin located in northeastern Mexico for exploration and development through its newly created multiple service contract which allow foreign oil companies to explore for oil and gas in Mexico. It is anticipated that the contracts will be awarded by September of this year. Pemex is trying to increase its gas production by 1 billion cubic feet per day within a three-year period.

The eight blocks in the Burgos basin cover an area of approximately 13,300 square kilometers. The average block size is 1,600 square kilometers. Currently, production is at 130 mmfcd from 150 wells. Proven reserves stand at 800 bcf with potential reserves estimated at 3 to 4 tcf.

The block are: Ricos, Reynosa-Huizache, Monterrery-Pascualito, Mision, Corindon-Reno, Pandura-Olmos, Cuevito, and Fronterizo and are located in the northeast part of Mexico, the Basin is the largest producer of non-associated gas in the country. Bounded on the north by the International Border with the USA (Rio Bravo or Rio Grande River) the Rio Grande Embayment basin maintains the same characteristics from South Texas through northern Mexico. On the east, the Basin is bounded by the continental platform of the Gulf of Mexico; to the south by the Cuenca Tampico-Misantla and to the west by the outcrop of the Cretaceous-Tertiary boundary in the vicinity of the Sierra Madre Oriental.

In 1945, Petroleos Mexicanos took over operations intensifying the exploration and development of the fields. The result: a maximum production of 650 MMCFD in June of 1970. A decrease of exploration and development activities, coupled with the normal decline of the fields caused the production to fall to 180 MMCFD in 1993.

Today, using state of the art technology, basin reactivation and field re-development, the production of gas has increased up to and been maintained at 1 BCFD for the last 3 years. Pemex says its objective with this licensing round is:

  • To develop low permeability fields
  • To identify deeper Basin developments
  • To accelerate the production of the Plays producing in South Texas
  • To promote the drilling of well depths between 1,000 m - 6,000 m
  • To acquire a minimum of 6,500 square kilometers of 3D seismic
  • To construct necessary infrastructure for production