GE signs $84 million deepwater exploration agreement in Gulf of Mexico

Source:GE Oil & Gas

GE Oil & Gas has signed an $84 million agreement with PEMEX to supply and install subsea wellheads for PEMEX’s deepwater and ultra-deepwater drilling projects in the Gulf of Mexico. GE Oil & Gas (NYSE: GE) has signed an $84 million agreement with PEMEX Exploration and Production to supply and to install subsea wellheads for PEMEX’s deepwater and ultra-deepwater drilling projects in the Gulf of Mexico. This marks GE’s largest agreement with PEMEX for the supply of subsea high capacity wellheads.

The Gulf of Mexico is a strategic zone for the hydrocarbon industry, since it is estimated to hold more than 50 percent of Mexico’s potential or prospective resources. However, such reserves are located in deepwater and ultra-deepwater sites, and advanced technology is needed to extract those resources for the benefit of the country.

GE Oil & Gas has become a strategic partner both for PEMEX and for Mexico in the search of new hydrocarbon reserves. By designing high-technology subsea wellheads that provide a larger load, pressure capacity and a full-bore design, unique in the market, GE is helping drillers reach greater depths. For the latest PEMEX project, GE will supply SMS800 and DWHC 700 high capacity wellheads; similar GE technology has previously been installed at several other Mexican oil fields including Perdido, Lakach and Kunah.

Carlos Arnoldo Morales Gil, Head of PEMEX Exploration and Production, talks about the importance of such partnership: “PEMEX uses the most advanced technology in the world; our main goal is to optimize the hydrocarbon reserves and the resources we have. This is one of the reasons we've been using technology and expertise provided by GE Oil & Gas for several years now."

“Our focus is to seek partnerships where GE can offer its expertise to support the economic development of Mexico,” said João Geraldo Ferreira, president and CEO for GE Oil & Gas Latin America. “Mexico has an increasingly strategic position in our company’s global business plans, and PEMEX is one of the most important partners we have.”

Octavio A. Mejía, regional sales manager for GE Oil & Gas Subsea Systems in Latin America, pointed out that this agreement confirms the trust and the excellent collaboration between PEMEX and GE Oil & Gas. “During the last six years GE has provided top of the line technology and training to PEMEX. So far, we have provided subsea wellheads and service to more than 24 wells and we expect to provide many more.”

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