MEXICO CITY Dec 16 Mexico's state oil company
Pemex said on Tuesday it will seek bids from drilling
contractors for 500 new development wells in the Chicontepec
area, which Pemex is banking on to replacing dwindling output
from other fields.
The vast Chicontepec area in eastern Mexico is thought to
contain billions of barrels of oil but recovering crude from
the area is difficult due to challenging geology.
Wells drilled in Chicontepec produce little oil as the
rocks of the basin do not easily allow oil to flow through them
and the oil reservoirs are at a low pressure.
Mexico produces approximately 35,000 bpd at Chicontepec.
Pemex, seeking to boost output from the area to 550,000 bpd or
more by 2021 plans to drill 15,000 wells over the next 15
years in Chicontepec.
Analysts have questioned the viability of those plans,
noting the fields were discovered decades ago but never placed
into production due to the technical challenges.
Pemex expects to award the drilling contract in March
(Reporting by Robert Campbell; Editing by David Gregorio)