Chicontepec Field
Encyclopedia
The Chicontepec Basin is a petroleum system in Mexico
north-east of Mexico City
, covering an area of around 3800 square kilometres (1,467.2 sq mi) in the states of Veracruz, Puebla and Hidalgo. Several oil fields have been discovered in that area since 1926. A major field was discovered in 1973 but contains extra heavy crude, which due to special refining needs is considered unviable at this time. Since that time, tiny amounts of oil have been produced. While the reserves are overwhelmingly extra heavy crude, pockets of lighter tight oil
, as well as natural gas
, are also found in the basin.
with original oil in place of over 139 Goilbbl of oil equivalent; recovery is complicated by challenging, low recovery rate reservoirs, but is made more attractive due to the presence of light and super-light crude oil. http://findarticles.com/p/articles/mi_m3159/is_11_222/ai_80326155. In 2003, PEMEX
said it could take total investment of $
30 billion over 15 years to fully develop Mexico's oil and gas reserves in the Chicontepec Basin. The project would require drilling 13,500 wells in the basin, much more than the total number of oil wells now producing in the country. This situation is interesting as the oil wells would be numerous and small. It would be necessary to get permission to drill from the communities that these wells would be in. Fortunes might be made by private firms in the pre-exploratory negotiating phase.
In addition to being economically and technically challenging, the basin's development also faces political difficulty, because the areas overlapping it are quite densely populated, including by Native Americans like the Otomi
tribe. Despite these difficulties, Pemex urgently needs production from Chicontepec to offset the rapid production decline in its main offshore field, Cantarell
.
In February 2009, the certified reserves of Chicontepec Field were comparable with half of those in Saudi Arabia with 1139 Goilbbl, which puts Mexico at the fourth place of the countries with most oil reserves after Venezuela, Saudi Arabia and Canada, yet, Mexico lacks the technology to exploit those reserves.
announced that Pemex would be investing $37.5 billion US dollars over the next 20 years on the oil fields of Chicontepec. It is hoped that this will boost the fields' output to 1 Moilbbl/d. Pemex's chief executive estimates that 20,000 wells are to be drilled in order to exploit this field.
Intensive drilling has taken place in Chicontepec in recent years, starting with a contract for 500 new wells offered in December 2008. However, results in terms of output have been disappointing, with the field still yielding a modest 46000 oilbbl/d in the 3rd Quarter of 2010.
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
north-east of Mexico City
Mexico City
Mexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...
, covering an area of around 3800 square kilometres (1,467.2 sq mi) in the states of Veracruz, Puebla and Hidalgo. Several oil fields have been discovered in that area since 1926. A major field was discovered in 1973 but contains extra heavy crude, which due to special refining needs is considered unviable at this time. Since that time, tiny amounts of oil have been produced. While the reserves are overwhelmingly extra heavy crude, pockets of lighter tight oil
Tight Oil
Tight oil is a light crude oil contained in petroleum-bearing formations of relatively low porosity and permeability . It uses the same horizontal well and hydraulic fracturing technology used in recent boom in production of shale gas...
, as well as natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, are also found in the basin.
Overview
Chicontepec Basin contains Mexico's largest certified hydrocarbon reserve, totaling more than 19 Goilbbl of oil equivalentBarrel of oil equivalent
The barrel of oil equivalent is a unit of energy based on the approximate energy released by burning one barrel of crude oil. The US Internal Revenue Service defines it as equal to 5.8 × 106 BTU...
with original oil in place of over 139 Goilbbl of oil equivalent; recovery is complicated by challenging, low recovery rate reservoirs, but is made more attractive due to the presence of light and super-light crude oil. http://findarticles.com/p/articles/mi_m3159/is_11_222/ai_80326155. In 2003, PEMEX
Pemex
Petróleos Mexicanos or Pemex is a Mexican state-owned petroleum company. As of 2010, with a total asset worth of $415.75 billion, it is the second non-publicly listed largest company in the world by total market value, and Latin America's second largest enterprise by annual revenue as of 2009...
said it could take total investment of $
Mexican peso
The peso is the currency of Mexico. Modern peso and dollar currencies have a common origin in the 15th–19th century Spanish dollar, most continuing to use its sign, "$". The Mexican peso is the 12th most traded currency in the world, the third most traded in the Americas, and by far the most...
30 billion over 15 years to fully develop Mexico's oil and gas reserves in the Chicontepec Basin. The project would require drilling 13,500 wells in the basin, much more than the total number of oil wells now producing in the country. This situation is interesting as the oil wells would be numerous and small. It would be necessary to get permission to drill from the communities that these wells would be in. Fortunes might be made by private firms in the pre-exploratory negotiating phase.
In addition to being economically and technically challenging, the basin's development also faces political difficulty, because the areas overlapping it are quite densely populated, including by Native Americans like the Otomi
Otomi people
The Otomi people . Smaller Otomi populations exist in the states of Puebla, Mexico, Tlaxcala, Michoacán and Guanajuato. The Otomi language belonging to the Oto-Pamean branch of the Oto-Manguean language family is spoken in many different varieties some of which are not mutually intelligible.One of...
tribe. Despite these difficulties, Pemex urgently needs production from Chicontepec to offset the rapid production decline in its main offshore field, Cantarell
Cantarell Field
Cantarell Field or Cantarell Complex is an aging supergiant oil field in Mexico. It was discovered in 1976 by a fisherman, Rudesindo Cantarell. It was placed on nitrogen injection in 2000, and production peaked at in 2003. In terms of cumulative production to date, it is by far the largest oil...
.
In February 2009, the certified reserves of Chicontepec Field were comparable with half of those in Saudi Arabia with 1139 Goilbbl, which puts Mexico at the fourth place of the countries with most oil reserves after Venezuela, Saudi Arabia and Canada, yet, Mexico lacks the technology to exploit those reserves.
Attempts at increasing output
In March 2006, Mexican President Vicente FoxVicente Fox
Vicente Fox Quesada is a Mexican former politician who served as President of Mexico from 1 December 2000 to 30 November 2006 and currently serves as co-President of the Centrist Democrat International, an international organization of Christian democratic political parties.Fox was elected...
announced that Pemex would be investing $37.5 billion US dollars over the next 20 years on the oil fields of Chicontepec. It is hoped that this will boost the fields' output to 1 Moilbbl/d. Pemex's chief executive estimates that 20,000 wells are to be drilled in order to exploit this field.
Intensive drilling has taken place in Chicontepec in recent years, starting with a contract for 500 new wells offered in December 2008. However, results in terms of output have been disappointing, with the field still yielding a modest 46000 oilbbl/d in the 3rd Quarter of 2010.