Pemex Says Chicontepec Basin Development Could Cost $30 BN

Pemex estimates it could take a total investment of $30 billion over a period of 15 years to fully develop Mexico's oil and gas reserves in the Chicontepec basin. During a tour of the Gulf coast state of Veracruz, Pemex director Raul Munoz said the project would require drilling 13,500 wells in the basin, which covers an area of around 3,800 square kilometers in the states of Veracruz, Puebla and Hidalgo.

Pemex recently awarded a $500 million contract to ICA-Fluor Daniel and Schlumberger Oilfield Services joint venture to begin the development project. Munoz said the project could yield about 18 billion barrels of crude oil equivalent.

Chicontepec contains some of Mexico's most complicated oil and gas reserves. Although production began in 1952, output has been minimal with less than 1,000 wells drilled.