Offshore Mexico: the Subsea perspective

OE’s Audrey Leon spoke with Francisco Nunez, regional sales manager, Latin America, at OneSubsea, about the opening of Mexico’s oil and gas industry and what effects it will have on both OneSubsea and the industry at large.

Please explain why the opening of the Mexican market is important to OneSubsea, and the offshore oil and gas industry at large?

OneSubsea has been pioneering subsea tree innovation for more than 50 years.
Photo from OneSubsea.

 

The Mexican energy reform, approved in December 2013, ended the 76-year state monopoly held by Pemex, thereby creating an open market for international oil companies (IOCs) to operate. It is expected that some of these operators will bring the investment and experience needed to develop the deepwater areas of Mexico. OneSubsea offers a full suite of products and services to help predict and address potential challenges operators may face, as well as help boost production and increase the life of the deepwater fields and their recovery factors.

It was announced back in October that OneSubsea won a contract with Pemex for the Lakach Deepwater development in Mexico. Can you discuss the particulars of the work involved?

The Lakach deepwater development is the first subsea production system to be installed in Mexico, and OneSubsea is honored to have been awarded this project from Pemex. The scope of supply for the seven well system includes subsea production equipment and tooling. OneSubsea will also provide installation and commissioning services. Deliveries are expected to begin in June 2016.

What other kind of projects is OneSubsea currently involved in, or looking to get involved in? Are you working with a partner?

OneSubsea has a strong technical and commercial team currently supporting Pemex locally in Mexico on different projects. We are strongly focused on the Perdido area where we foresee major exploration / development activity in the next five years. The Perdido area contains around 1.6 billion boe of prospective resources, split into 11 deepwater blocks that are now available for bid. The Tsimin Xux and Ayatsil projects are also major areas of interest for engagement with Pemex, as satellite well developments are expected in the future. Furthermore, the Kunah and Piklis fields are potential Lakach extensions assigned to Pemex during Round Zero that will become available through the bid processes.

What are some of the solutions (technologies) OneSubsea can provide and deploy in this sector?

Offering a comprehensive, reliable, in-house suite of subsea technologies strongly positions OneSubsea to effectively partner with operators in Mexico. OneSubsea is a leading provider of subsea production / process systems and life-of-field services, combining Cameron flow control expertise, and world-class manufacturing and aftermarket capabilities with Schlumberger’s complementary technologies, such as petro-technical leadership, artificial lift, and subsea well intervention.

We focus on those areas where we can support our operator partners from the early engineering stages, as well as apply our innovative technology portfolio in order to maximize the reservoir recovery factor. Major areas of opportunity are with subsea boosting technologies and production assurance capabilities. Our experts have extensive experience with subsea processing, production systems, and flow assurance studies. Along with our field-proven technologies, we are looking for drilling and completion opportunities for 20,000 psi applications where we can leverage Cameron’s flow control and seal technology.

What are some of the challenges OneSubsea sees in Mexico in terms of workforce, available materials and equipment? What will it take to solve them?

Availability of experienced subsea engineers will be one of the major challenges to develop a subsea industry in Mexico. The lack of deepwater experience in Mexico to-date has resulted in a shortage of subsea-trained talent. As such, we do anticipate challenges in obtaining and retaining an in-country workforce with the proper deepwater experience. Employing a foreign workforce is always an option; however, that will impact cost of the services to be provided.

In regards to material and equipment, Mexico has excellent access to multiple suppliers around the world with vital ports in two different oceans. Yet we foresee challenges with the onshore infrastructure that is required to handle subsea equipment logistics; to and from the different fields within the Gulf of Mexico. Major investment is required to complete an offshore base that can handle the large, heavy equipment that cannot be transported by a truck on the existing roads.

Finally, after the reforms, what is the long-term outlook for Mexico’s oil and gas industry from your perspective?

The energy reform has created optimism around the future of the Mexican oil and gas industry; there is a positive outlook for a number of areas of interest. For instance, investments from joint ventures can support Pemex in its drive to maximize well recovery. In the past, immediate access to a mature field’s reserves was not attainable due to a lack of or insufficient technology. Currently, the deepest producing well in Mexico is around 400ft. If we compare this with the north side of the Gulf, we can presume a large potential for major subsea developments in the near future.


Francisco Nunez
is regional sales manager, Latin America, at OneSubsea. He has more than 12 years of experience in the oil and gas industry, specifically in the deepwater production systems market. Nunez has actively participated in all phases of some of the most important subsea developments in Latin America (excluding Brazil), including the PDVSA Dragon project and the PEMEX Lakach project. Nunez is based in Mexico City, Mexico, and holds a mechanical engineering degree from Universidad Metropolitana, Caracas, Venezuela.

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