Pemex Calls for Bids on 500-Well Onshore Drilling Tender in Chicontepec

Pemex has issued a second tender to carry out the drilling and completion of 500 development wells in order to increase its volume of reserves and hydrocarbon production in the onshore area of Chicontepec.

Along with this package, Pemex plans to develop a total of 1,000 wells, an unprecedented amount of drilling activity for the company. Since Chicontepec's oil fields are characterized by containing a low content of oil, low permeability and pressure and low productivity per well, Pemex is carrying out this ambitious project to ramp up the area's production levels.

During the past five years, Pemex has drilled an average of 657 wells, which underscores how challenging the Chicontepec project will be.

In November, the company announced that it had launched tenders to build access roads and the initial infrastructure needed to place drilling rigs at 68 new sites in the Chicontepec basin. According to Dow Jones Newswires, Mexico's Congress approved tax incentives for the basin to ensure that Pemex could profit from these drilling ventures by allowing the company to deduct $11 a barrel in costs at Chicontepec.

By undertaking this exploration and development endeavor, Pemex hopes to achieve a production rate of 600,000 barrels a day by the year 2021.