Schlumberger Wins Field in Pemex Auction, Alfa Wins 2 Blocks

Schlumberger Ltd. (SLB), the world’s largest oilfield-services provider, Petrofac Ltd. (PFC), and Alfa SAB (ALFAA) were among the winners to develop four mature oil fields in today’s auction by Petroleos Mexicanos

A consortium formed by Alfa’s Alfasid del Norte unit and Monclova Pirineos Gas SA won the right to drill the onshore blocks of Tierra Blanca and San Andres at today’s auction. Schlumberger will develop the Panuco field with Petrofac and Cheiron Holdings Ltd. won the Altamira field, Pedro Velazquez, who managed the bidding round for the state-owned company known as Pemex, said at the auction in Poza Rica, Mexico.

Pemex is using new service contracts to attract private oil producers to develop mature fields and increase well-extraction rates to reverse seven years of output declines. Today’s auction is the second round of contracts after changes to national oil laws allowed private and foreign companies to gain control, without ownership, of Mexican fields for the first time since the industry was nationalized in 1938.

Halliburton Co. (HAL), Repsol SA, Baker Hughes Inc. (BHI) and Saipem SpA (SPM) were among the bidders to develop the fields Altamira, Arenque, Atun, Panuco, San Andres and Tierra Blanca. The areas may contain as much as 1.7 billion barrels of oil equivalent, the Mexico City-based company has said on its website.

Pemex will pay the Alfa group $3.49 a barrel for the San Andres field and $4.12 at the Tierra Blanca development. Cheiron will be paid $5.01 a barrel at the Altamira field. The Panuco block had a winning bid of $7 per barrel by Schlumberger and Petrofac. Alfa shares rose 2.4 percent to 186.55 pesos at the close in Mexico City.

No contracts were awarded for the offshore fields of Atun and Arenque, Velazquez said.

To contact the reporter on this story: Carlos Manuel Rodriguez in Mexico City at carlosmr@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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