Schlumberger Oilfield Services, in partnership with ICA Fluor Daniel, has been awarded an integrated oilfield services contract for the Chicontepec reservoir, the largest ever awarded in Mexico.

The $500 million contract to recover gas, light and heavier oil in the reservoir spans four years.

The consortium will undertake field studies, drilling, well completion and intervention services, surface infrastructure, and production facilities development in the Chicontepec onshore oil field for Pemex Exploration and Production (Pemex E&P), a subsidiary of the Mexican state-owned petroleum company.

The field is located 250km northeast of Mexico City in the states of Veracruz and Puebla.

Representing one of Mexico's largest proven reserves, the Chicontepec area is formed by a paleochannel reservoir discovered in 1925.

"This contract builds upon numerous successful projects in Mexico, and strengthens our business alliance in the country," Jose Magela Bernades, general manager, Mexico GeoMarket, Schlumberger Oilfield Services, is reported to have said.

"For the first time a service company will directly collaborate with Pemex on the field development plan under an integrated service concept.

"Our strategic alliance with ICA Fluor Daniel brings together companies with complementary technical skills and international relationships."

The initial stage of large-scale development planned for the Chicontepec field will comprise a field study of several blocks, drilling 200 wells and completion of 50 additional wells.

This phase also includes optimisation of production facilities installed around the reservoir, reduction of operations and maintenance costs; integration of production installations using reservoir energy efficiency; construction of multiwell drilling pads; use of recycled gas for pneumatic pumps and minimising environmental impact.

New field studies also will be conducted where Pemex wants to further develop the Chicontepec field.

The consortium will complete and fracture 250 wells, and establish the production regime and injection strategies.

The contract also includes providing manned rigs, all associated surface facilities and required infrastructure, such as pipelines, compression and storage.

Founded in 1947, ICA Fluor Daniel, the Mexico-based partnership of Fluor Corporation and Empresas ICA Sociedad Controladora, is an industrial engineering company in Mexico.

The firm is dedicated to the engineering, procurement, and construction of oil and gas, refinery, petrochemical and chemical, power generation, telecommunication and automotive facilities, among other industrial sectors.

It has completed construction and engineering projects in 21 countries

California-headquartered Fluor provides services on a global basis in the fields of engineering, procurement, construction, operations, and maintenance and project management.