By Marcus Leach
Petrofac Facilities Management Ltd, a leading British service firm have secured a contract to operate the mature oil fields of Magallanes and Santuario following a UK Trade & Investment trade mission to the Mexican Petroleum Congress in Puebla, last June.
In March 2011, PEMEX, the Mexican state-owned oil company, announced their first incentive based contracts for exploration and production in three mature fields.
Taking part in the trade mission facilitated by UK Trade & Investment, Petrofac used the opportunity to showcase their expertise as an oil and gas facilities and infrastructure provider and successfully bid for the lucrative contract.
This 25 year private contract will allow operation of a Mexican oil field and will start following the signing of the final agreements on 18 October. The deal will secure 150 jobs and for both British and Mexican employees. Petrofac has committed $500 million to the project, giving it a 90% interest, with Pemex retaining 10%.
“This is a great win for Petrofac and GB Plc. The government has already committed to strengthening our trade and investment links with the fastest growing economies of the world, which include Mexico," Susan Haird, acting Chief Executive of UK Trade & Investment said of the successful bid.
"Energy is an important component of the growing international trade markets and this deal both confirms the many commercial opportunities for British oil and gas firms in Mexico and that UK Trade & Investment can help companies secure them.”
Andy Inglis, Chief Executive of Petrofac, was clearly delighted with the news and winning of the contract.
“We are delighted to be named as the selected bidder. We look forward to establishing a long and successful relationship with Pemex, deploying our broad capabilities and technical expertise to improve production on these fields and working to develop local resources in Mexico,” he said.
UK trade with the Latin American region increased by 30 per cent last year and bilateral trade in goods to Mexico, over the same period, went up by a third. Mexico’s National Infrastructure Plan, set up in 2007, set out an investment programme worth £140 billion.
Around 350 British companies and 900 with British capital are already operating in Mexico and UK Trade & Investment has identified opportunities for UK companies in sectors such as infrastructure, energy, retail, advanced engineering, and education.
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