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Keppel, Pemex to build rig yard in Mexico

04th October 2013

Keppel Offshore & Marine and top Pemex subsidiaries sign MOU to develop USD 400m rig production facility to support country’s oil and gas industry

Keppel, Pemex to build rig yard in Mexico
The proposed yard will have a total development cost of USD 400m and be located in the Port of Altamira, along the coast of the Gulf of Mexico

Keppel Offshore & Marine on Friday announced the signing of an MOU with Mexico’s national oil company and world’s fifth largest oil producer Pemex to jointly develop a USD 400m rig production yard in the country to help support the development of its oil and gas industry.

 

Keppel O&M signed the memorandum of understanding with Pemex Exploracion y Produccion (PEP), Pemex’s E&P arm, and P.M.I Norteamérica, Pemex’s commercial arm in the international energy market.

 

Under the MOU, the three parties will jointly develop, own and operate a yard facility to build jack-up rigs to further develop Mexico’s marine and offshore industry as well as its offshore hydrocarbon potential. The proposed yard will have a total development cost of USD 400m and be located in the Port of Altamira, along the coast of the Gulf of Mexico.

 

The yard will be developed in phases. The first phase, estimated at about USD 150m, will undertake certain portions of the work scope in the construction of six Keppel-design KFELS B class jack-up drilling rigs for PEP.

 

Subsequent phases of the yard development will enable it to take to deep-draft semi-submersibles and drillships for repairs, undertake floating, production, storage and offloading (FPSO) and floating liquefied natural gas (FLNG) units, as well as fabricate topside modules and other offshore structures.

 

Emilio Lozoya, CEO of Pemex, said of the MOU: “Mexico’s proven reserves of oil and gas at the start of 2013 is almost 14 billion barrels of crude-oil equivalent and we believe that a significant number of shallow water and deepwater drilling rigs as well as FPSOs and FLNGs will be required to maximise production in the years to come,” said Emilio Lozoya, CEO of Pemex.

 

The company’s national oil and company earlier this year launched plans to spend USD 25.3bn in upstream activities over the course of 2013.