Pemex unit lets contract for Veracruz pipeline project

Nov 16, 2009 01:00 AM

Petroleos Mexicanos subsidiary Pemex Exploration & Production (PEP) has awarded Copavisa the tender for construction of various pipelines in its Veracruz project.
Copavisa presented a winning bid of pesos 115 mm ($ 8.77 mm) for the project, which will last for 2 years. Pemex's Veracruz project, the second-largest producer of non-associated natural gas in Mexico after the Burgos project, also produces some oil and associated gas.

News of the award follows an announcement by Pemex earlier that at least 90 of its oil and gas wells in Veracruz and Tabasco states were shut down due to flooding. Production dropped by more than 56 %, falling to 26,280 bpd from 60,000 bpd, according to Pemex executive Fernando Flores Rivera, whose office controls 241 wells in the area.
Heavy rains flooded dozens of oil wells and access roads, preventing 1,500 Pemex workers from reaching work sites. Pemex said that 90 % of pumping stations are paralyzed, affecting the La Cangrejera and Pajaritos petrochemical facilities in the southern Veracruz port of Coatzacoalcos.

On Nov. 13, two Pemex helicopters began transporting workers to wells that had not been flooded so they could restart oil and gas production. Flores said that there were no production problems at the fields in Nanchital, where output totals some 40,000 bpd.
Rains and floods struck 11 cities in Veracruz, affecting at least 18,000 people, forcing 1,500 others into shelters and causing structural damage to about 20,000 dwellings.

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