Deutsche Erdoel Mexico inked a license contract on March 6 with Pemex and the Mexican National Hydrocarbons Commission (CNH) for the Ogarrio Field in Mexico.
Deutsche Erdoel Mexico is now the operator of the producing oil field, holding a 50% license share. The company aims to increase the production from the field within a short time.
“We are very pleased, being also the first international oil and gas company, which will operate a producing onshore field in the country, since Pemex started its farm-outs,” Maria Moraeus Hanssen, CEO of DEA Deutsche Erdoel AG, said.“Mexico is strategic for us and our commitment to the country is long-term, with the aim of building-up a portfolio of attractive exploration, development and production assets,” Hanssen added.
Current gross production from the Ogarrio Field is about 10,000 barrels of oil equivalent per day.
“We aim to increase the production from Ogarrio significantly already within the next year,” Juan Manuel Delgado, President of Deutsche Erdoel Mexico, said. “To optimize the field performance and boost production short-term, we will carry out an extensive workover campaign for the existing wells. In addition, we plan drilling further development wells from early 2019 on.”
The onshore field Ogarrio is located 66 miles (107 km) west of Villahermosa in the state of Tabasco, in the southeast of Mexico.
The field was discovered in 1957 and since then, 527 wells have been drilled. More than 100 wells are currently active producers. The main reservoirs are located in rocks of the Miocene and Pliocene. DEA Deutsche Erdoel AG has extensive experience from its international operations in producing oil and gas from sandstone reservoirs and in using innovative measures to overcome production declines in mature fields.
DEA Deutsche Erdoel AG acquired the 50% license share and operatorship of the oil field in an auction held by CNH in autumn 2017.