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MagallanesBlockMatureFields

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ExecutiveSummary

Block

Magallanes

SouthRegion
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MagallanesBlockMatureFields

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Table of Contents

Page

1. GeneralDescriptionoftheBlock

1.1 GeneralDescription

1.2 Generalpropertiesofthereservoirs

1.3 GeologicalCharacteristics

1.4 DrillingCharacteristics

1.5 SocialandEnvironmentalConditions

2 DevelopmentoftheBlock

2.1 Seismic2Dand3D

2.2 Wellsdrilled,shutin,pluggedandinproduction
2.3 DrillingResults

2.4 WellMaintenance

2.5 ProductionHistory

2.6 InfrastructureFacilities

2.7 FacilitiesMaintenance

3 BlockPotential

3.1 HydrocarbonReservesandCumulativeProduction

3
3
8
8
17

19
19
25
26
27
28
31
43

46
46

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1. GeneralDescriptionoftheBlock
1.1GeneralDescription
TheMagallanesBlockbelongstoinvestmentprojectOgarrioMagallanesoftheCincoPresidentesAsset,
in the Region Sur (RSUR) of Pemex Exploration and Production (PEP.) Geographically is located in
Southeast Mexico north of morphotectonic depression known as Istmo de Tehuantepec which is
approximatelyat50kmeastofthecityofCoatzacoalcosinthestateofVeracruz.TheBlockislocatedin
asedimentarybasinSalinadelIstmoonthewestsideofstateofTabasco(Figure1.)

Figure1GeographiclocationoftheprojectOgarrioMagallanes

Theblockingeographicalcoordinatesislocatedbetweentheparallels1830and18140oflatitude
northandthemeridians9400y93500oflongitudewest.Todelineatetheextensionoftheblock
thefollowingpolygonwasgeneratedtogethertherespectivegeographiccoordinates(Figure2)

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Figure2CornersofthesurfacepolygonBlockOtatesMagallanes

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SURFACEPOLYGON
CORNER

LONGITUDE

LATITUDE

93.8499813430

935100"

18.2166663134

181300"

93.8499724437

935100"

18.0666680635

180400"

93.9000273406

935400"

18.0666764669

180400"

93.8999549713

935400"

18.0833575540

180500"

93.9499765693

935700"

18.0833376589

180500"

93.9499678698

935700"

18.0666693939

180400"

93.9833024521

935900"

18.0666666031

180400"

93.9833046532

935900"

18.1333331971

180800"

93.9332883086

935600"

18.1333285115

180800"

10

93.9333113063

935600"

18.1999997887

181200"

11

93.8999711401

935400"

18.1999964040

181200"

12

93.8999804303

935400"

18.2166666563

181300"

Table1GeographicCoordinatesofthecornersofthesurfacepolygon

TheaccesstotheOtatesfieldislocatedonthekm338offederalhighwayCoatzacoalcosVillahermosa
usinganasphaltroadof2.7km.ThefieldSanchezMagallanescanbereachedusingtheroadLaVenta
Magallanes an asphalt road of 18 km.It is also a connection to the federal highway to Villahermosa,
Tabascoatthekm351usingaroadof14km.

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OTATESFIELD
LOCATIONMAPOFWELLSUTMCOORDINATES

Figure3MapofwelllocationsfieldOtates

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MAGALLANESFIELD
LOCATIONMAPOFWELLSUTMCOORDINATES

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Figure4MapofwelllocationsSanchezMagallanesfield

1.2 GeneralPropertiesoftheReservoirs
TheMagallanesBlockcoversanareaof169.06sqkm.Itismadeupofnumeroussandstonereservoirs
betweendepthsof2,000to3,500metersandcontainslightcrudesof31to34API.
PETROPHYSICALPROPERTIES
Field
Otates
S.
Magallanes

Field
Rock
area ReservoirType
Type
(km2)
12.44
Structural
Sandstones
Stratigraphic
Structural
Stratigraphic

78.51

Sandstones

Gross
Net
Permeability
Depth
Thickness Thickness
(mD)
(m)
(m)
(m)
11155
45
33
2,200

Porosity
(%)
1925

1126

10151

90

60

2,500

FLUIDPROPERTIES
Field

Initial
Current
Density GOR Qoi
Pressure Pressure
(*API) (m3/m3) (bpd)
(kg/cm2) (kg/cm2)

Otates

34

252

250 186245

60220

S.Magallanes

33

234

277 100301

80246

u@sc
(cp)

Boi
Rsi
P.Sat
Temp
(*C) (m3/m3)(m3/m3) (kg/cm2)

5.276.4 7189
8.02
15.99

54
100

1.56 191237 186245

1.21.6 86145

135226

Boi=Oil Formation Volume Factor at Initial Pressure, u=Viscosity, @sc = Surface conditions

Table2ReservoirProperties

1.3GeologicalCharacteristics

ThereservoirsoftheOtatesandSanchezMagallanesfieldsareofTertiaryage.Atotalofeightysix(86)
sandshavebeenidentified20inOtatesand66inSanchezMagallaneswithintheUpperandLower
ConcepcionandEncantoformations.Mappingofthestructuralblocksofthevarioushorizonsindicates
the presence of more than 159 reservoirblocks. The majority of production is from the Encanto
formation, which is made up of turbidite deposits in a minibasin of salt structures. Stratigraphically
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above the Encanto is the Lower Concepcion, which is made up mainly shale units with interspersed
producingsands.AboveitistheUpperConcepcionformationwhichisadeltaicfrontsystemmadeupof
sandsthatcontainprimarilywater.Thesesandstonesweredepositedassubmarinefansincontinental
slopebasinsthatweredevelopedbytheactivityandmovementofsaltbodies.Thesaltbodiesintheir
migrationormovementtoshallowwaterareas,contributedtothegenerationasystemofnormalfaults
with general dip and which jointly with salt tops make up the seals for reservoirs of the producing
sequences(Figure5.)

Figure5TypicalGeologicalColumn

ThereisaclearrelationbetweentheproducingzonesoftheTertiaryreservoirs,whichareprimarily
minibasinturbiditedepositsbetweensaltstructures,andthelocationofthestructuralhighsofsalt.

Thesurfaceofthetopsoftheproducingformationsaregovernedbythestructuraldistributionofthe
salt(anhydriteformation)whichisananticlinewithastructuralhighcutbynormalfaultsand
discordances,compartmentalizingthereservoirintoseveralblocks.Thiscompartmentalization,because

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ofthesametectonicreasonsandassociatedfracturing,iscongruentwiththelateralandvertical
variations,bothstructuralandstratigraphic.

The existence of an important set of regional faults, contemporaneous to the opening of the Gulf of
Mexico, defines the control of the structural systems of the different fields conditioning the
developmentanddesignoftheotherfaults(Figure6.)

Figure6Structuralstyleofthesands,continuityofseismiceventsandthegeometryofthesalt

FortheOtatesfield,thestructuralinterpretationwasdonebycorrelatingelectriclogsofwellsdrilleduntilApril
1971 and it become the model for the production geology for the PEP asset. The Otates field is located in the
SalinadelIstmobasin.ItisasecondaryhighofanasymmetricsaltdomeoftheOgarriofieldandislocatedtothe
NWofOgarriofield.Thisstructurewasdiscoveredusingseismic backin1964.Alaterstudy,combiningseismic
andsubsurfacegeologyconfirmedtheexistenceofthestructureinthenorthportionoftheOgarriofieldinthe
NWdirection.

Thegeologicalmodelmentionedabovewasbasedonsubsurfaceinterpretation,geology,productiondataform
drilledwellsandqualitativeandquantitativeanalysisofwelllogs.

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OTATESFIELDTOPOFSAND14

Figure7TopofSand14,fieldOtates

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OTATESFIELDStructuralSectionY5

Figure8StructuralSectionY5,fieldOtates

Basedonthecorrelationsperformeditwasdefinedthatthestructuralstratigraphicconfigurationofthe
Otates field is controlled mainly by twenty two (22) faults, pinchout (wedging) and lateral facies
changes. Of the mentioned faults, six (6) are considered as main faults because of the magnitude of
displacementandtheinfluencetheyexertintheaccumulationofhydrocarbons;theremainingfaultsare
classifiedassecondary.

Theidentificationoftheformationsinthetypegeologicalcolumnforthefieldisbasedonpaleontology
fromcuttings,fromsomewellsandgeneralizedtootherwellsthroughcorrelationofelectricalwelllogs.
Thetrapsdefinedarestructural,stratigraphicandacombinationofboth.

BelowweshowthestratigraphiccolumnforthefieldOtates:

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AGE

Formation

DEPTH(m)

THICKNESS(m)

Pleistocene

Cedral

Outcrops

600

PlioPleistoceno

ParajeSolo

600

500

Plioceno

Filisola

1100

430

Mioceno

UpperConcepcion

1530

120

Mioceno

LowerConcepcion

1650

150

Mioceno

Encanto

1800

1200

Mioceno

Deposito

3000

150

TrisicoJursico

SaltAnhydrite

3150

20mpenetrated

Table3Typicalstratigraphiccolumn,fieldOtates

ThegeologicalmodelfortheSanchezMagallanesfield,obtainedfromtheinterpretationof2Dseismic
lines,isconsistentwiththegeologicalmodelobtainedfromwells.

The tops of the Encanto, Lower and Upper Concepcion formations are governed by the structural
distributionofsalt(formationanhydrite)thatisananticlinewithastructuralhighinthenorthsideof
thefield,atadepthof1,500meterbelowsealevelandlocatedbetweenthewellsSM14,SM5,SM6
andSM119.ThesurfacesoftheEncanto,LowerandUpperConcepcionformationsaredefinedbyan
anticline affected by normal faults and unconformities. The normal faults have a strike direction
primarilySWNEanddividethefieldintofourmainblocks.Thestructuralhigh,especiallyinthetopsof
LowerandUpperConcepcionformations,stretchesfivesspacestothewest(Figure9.)

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Figure9Seismicsection,fieldSanchezMagallanes

Theincrementofthesaltmovement,afterthesedimentationoftheConcepcionformation,createda
faultsystemzonethroughout..

The deposits in the field Sanchez Magallanes are structurally compartmentalized and can be broken
down into six (6) structural compartments separated by three (3) main fault systems and by salt
extrusionsthathavebeenaffectedbythedevelopmentofsaltcanopies.

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SANCHEZMAGALLANESFIELDTOPOFSAND28

Figure10TopofSand28,fieldSanchezMagallanes

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SANCHEZMAGALLANESFIELDStructuralSectionY20
LocationSM1411

Figure11StructuralSectionofFieldSanchezMagallanes

Three(3)areascanbeidentifiedinthefield:thenorthernareashowsafewsands,generallynotinvery
thickpackets,anddividedbythickshalelayersandthewellsareidentifiedbynumbers500s,600s,700s
and800s.Thesouthernregionischaracterizedbysandsthatingeneralhavehighclaycontent;thewells
havenumbers400s,900sand1000s.Thecentralareaisthemostprolificwiththebestqualitysands
withhighpotentialandthewellsarenumberedfrom2to447.

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ThestratigraphiccolumnforthefieldSanchezMagallanesisthefollowing:

AGE

Formation

DEPTH(m)

THICKNESS(m)

Outcrops

700

Pleistocene

Cedral

PlioPleistoceno

ParajeSolo

700

600

Plioceno

Filisola

1300

450

Mioceno

UpperConcepcion

1750

250

Mioceno

LowerConcepcion

2000

200

Mioceno

Encanto

2200

850

Mioceno

Deposito

3050

200

TrisicoJursico

SaltAnhydrite

3250

Table4StratigraphiccolumntypicalfieldSanchezMagallanes

1.4DrillingCharacteristics
RecentlyinfilldeviatedwellshavebeendrilledinthesouthareaofS.MagallanesandOtatesfields.The
drilling is normally done in three (3) stages using casing of 20, 13 3/8, 9 5/8, 7 and 6 5/8.
Completionsaredoneusingproductionpipingof23/8and27/8(Table5and6).

TYPE

Diameter(inches)

Line

133/8

Intermediate

95/8

500

1.101.12

2850

1.161.30

Production

Depth(meters)

Mud(grams/cm3)
30

Table5PipingutilizedintheOtatesField
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NORTHERNAREA

TYPE
Line
Surface
Intermediate
Production

CENTRALAREA

SOUTHERNAREA

Diameter

Depth

Mud

Diameter

Depth

Mud

Diameter

Depth

Mud

(inches)

(meters)

(g/cm3)

(inches)

(meters)

(g/cm3)

(inches)

(meters)

(g/cm3)

20
133/8
95/8
65/8

25
305
1785
3500

1.151.20
1.151.20
1.151.20
1.201.63

133/8
95/8
65/8

30
503
1975

1.20
1.201.27
1.201.27

20
133/8
95/8
65/8

20 1.08
500 1.081.12
2000 1.121.24
3850 1.241.67

Table6PipingutilizedintheS.MagallanesField

ThebitsutilizedcurrentlyarePDCdrillbitsthathavegreatlyimprovedtherateofpenetration(ROP)of
thetriconesbits.Theconnectionsofsurfacecontrol,preventersusedduringthedrillingandthetree
have a capacity of 5,000 lbs/sq in. The average temperature and pressure of the reservoir ranges
between8992Celsiusand120kg/cm2ofpressurerespectively.
1.5SocialandEnvironmentalConditions
ThecurrentsituationofthesurfaceareacoveredbytheMagallanesBlockisanenvironmentmodifiedby
thereplacementoftheoriginalvegetationbyproductivehumanoriginated(anthropogenic)whichhave
taken place over the last few years. The predominant vegetation now is pastures and agricultural
products for autoconsumption. The predominant activity in the area occupied by the field is cattle
ranching and therefore the soil shows, in general, a certain level of physicalbiotic degradation of the
habitatandthereareveryfewrepresentativecommunitiesofnativefloraandfaunaduemainlytothe
displacementanddestructionofnaturalhabitatsoccurredintherecentpastduetohumanactivity.

Thestrictcompliancetocertainrecommendations,listedbelow,willassuretimelyandfullcompletionof
theoperationalprogramsoftheexploitationplantobeproposedandwillreducetheassociatedrisks
generated by sociopolitical conflicts making more feasible the development of project of the
Magallanes field reactivation. The recommendations are: mitigating measures, the compliance to
establishedlegislation,stickingtosafetymeasures,protectionandconservationoftheenvironment,the
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maintenanceprograms,thepolicyofzerodischargesandtheapplicationofprogramsofsustainable
development for the communities through early management and fair and satisfactory
negotiations.Fromsocioeconomicpointofview,thereactivationoftheMagallanesfieldisexpectedto
cause a great positive impact that will benefit the local economy with the hiring of local labor for
servicesandtheutilizationoflowqualifiedpersonnel.

2 DevelopmentoftheBlock
2.1Seismic2Dand3D
ThisblockisgeologicallylocatedintheprovinceknownTertiaryBasinsoftheSoutheast.Itbelongsto
theSalinadelIstmosedimentarybasinwhichisofthepassivemarginaltype.Thetectonichistoryofthe
basinisrelatedtotwo(2)majorevents:theLaramideorogenythatoccurredattheendoftheMesozoic
thatoriginatedthecharacteristicNWSEfoldingofcarbonatesandtheChiapanecaorogeny(Miocene)
thatcausedmobilizationofsaltintrusionsanddolomitizationofthecarbonatesequences. In2005,PEP
acquired,usingtheservicesofCompaaMexicanadeExploraciones,S.A.deC.V.(COMESA)a722sq
km3DseismicsurveynamedCabritos3Dthatcoversthefieldsincludedintheblock:OtatesandSanchez
Magallanes,

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Figure2.1Locationoftheseismic3DcubesAntonioCabritosandRodador

Theprocessingoftheseismicinformationwasmadethrougha3Dstudynamed:UnionofCabritos3D
andRodador3D,alsomadeusingtheservicesofCOMESACompaaMexicanadeExploraciones,S.A.
deC.V.Theprocessingofthisseismicprojectwasmadeintwomainstages:
1. PostStackMigrationofthecompleteCabritos3Dcubeincluding200sqkmofthecubeRodador3D.
2. PreStackTimeMigrationofthecompletecubeandincluding200sqkmofthecubeRodador3D.
TheseismicstudyCabritos/Rodador3DcoversthesoutheastportionofMexico.Thenorthernportionof
thestudywasreprocessedwiththeobjectivetoimprovethesectionfrompreviousprocessingstudies.
The processing project presented two key difficulties. First the difficulties that emerged during the
acquisitionofthedataduetoanirregulargrid.Secondwasthecomplexityofstructuralgeologyofthe
regionthatincludesstructuresofanhydrite(calciumsulfate)andsalt,commonlyfoundintheTertiary
basins of the SE of Mexico. Despite these factors, the seismic response observed was good during all
phasesoftheproject.
Thepoststackprocessingofalldatawascompletedin2006.ThePSTMphasewascompletedbetween
December2005andMay2006.Ingeneralthequalityofthedataisgood;howeverthefirstreflections
were difficult to pick without ambiguity. Special care was given using a detailed analysis of four (4)
velocities,attentionandtheinteractionandcollaborationofthePemexpersonnel.

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SeismicDataAcquisitionParameters
Belowisalistoftheparametersofdataacquisitionandequipmentutilized:
Source:

Dynamite

Seismograph:

Box

Geophones:

30CT10Hz.

LongitudeofRegistration:

8seg.

SampleInterval:

2mseg.

OriginalFormat:

SEGD

ReceiverLineInterval:

450m

Distancebetweenreceivers:

50m

SourceLineInterval:

550m

ShotInterval

50m

NumberofChannels:

1820

Receivers/Swath

10lines/Swath

Coverage:

60

OffsetMin:

30m.

OffsetMax:

5000m.

AntiAlias:

206Hz.276dB/oct.

Table2.1DataAcquisitionfieldparametersfor3DcubeCabritos

ThetopographiccoordinatesXY,thealtitudes,depthofchargesandshottimeswererecoveredfrom
the seismic traces recorded in SEGY format provided by Pemex. There was no other support
informationavailable.
Editing o the seismic traces was done manually, record by record, using the interactive software
Sageview. Once the correction type Linear MoveOut was applied, consistent stack for shots and
receiversweredone.
Thefinalgridofthe3DstudyCabritos/Rodadorwas1036crosslines(EW)by2180inlines(NS).The
intervalbetweeninlinesandcrosslinesis25meters.

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Inline

Crossline

X Coordinate

YCoordinate

1
1
2180
2180

1
1036
1036
1

368207.7
359784.4
411292.2
419715.4

1978698
2003163.6
2020897.1
1996431.5

Table2.2CoordinateoftheseismicProcessinggrid

Belowasanexampleareshownsomeoftheresultsoftheprocessing3DstudyCabritos/Rodador

Figure2.2Inline1850:stackwithDMO

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Figure2.3Inline1200:PoststackMigration

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Figure2.4Inline1200:PrestackMigration

Figure2.5TypicalSeismicSection

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Figure2.6Locationofthe2Dseismiclinesinthearea

2.2Wellsdrilled,shutin,pluggedandinproduction

ThehydrocarbonreservoirsintheBlockareintheEncanto,Depositoformationandtoalesserextentin
the Upper and Lower Concepcin formations. A total of 775 wells were drilled in this block. As of
September30,2010,therewere54activewells,329shutinwells,84wellspendingpluggingand308
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wells plugged. Currently SanchezMagallanes has 35 active wells (34 in flowing and 1 on artificial lift)
producing at a rate of 3,700 bpd of oil and 4.92 MMcfd of gas. The Otates field has 19 active wells
producingatarateof3,133bpdofoiland8.67MMcfdofgas(Table2.3.)

Active
Wells

ShutIn

Pending
Plugging

Plugged

Total

Otates

19

10

10

25

64

S.Magallanes

35

319

74

283

711

TOTALAREA

54

329

Field

84
308
775

Table2.3StatusofwellsasofSeptember2010oftheblockMagallanes

2.3DrillingResults
BelowaretheresultsofthedrillingactivityperformedinOtatesandSMagallanesfieldsinthelastthree
(3)years.
Year

Well

2007
2009

2010

Drilling
Duration
(Days)

InitialOil
Production
(BPD)

InitialGas
Production
(MMcfd)

SnchezMagallanes1421

27

27

250

200

0.3

0.8

SnchezMagallanes1939

30

31

250

63

0.2

SnchezMagallanes1422

37

26

250

46

0.3

0.1

SnchezMagallanes1401

55

26

250

0.3

Otates500

40

38

200

358

0.6

0.3

Otates501

36

30

300

195

0.2

0.04

Otates502

36

25

300

321

0.2

0.5

Otates503

18

15

250

302

0.2

0.3

Otates504

25

29

250

273

0.5

0.5

Otates505

35

41

250

321

0.5

0.7

Otates506

35

23

250

201

0.5

0.1

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Otates507

35

32

250

264

0.5

0.5

Otates508

23

28

250

208

0.1

0.2

Otates509

23

26

250

258

0.0

0.4

Otates515

36

15

300

0.2

2.0

Table2.4DrillingactivitiesintheBlockMagallanes,Projected(P)vs.Actual(A)

2.4WellMaintenance

Year

Well

SnchezMagallanes1434
SnchezMagallanes1009
SnchezMagallanes215Q
SnchezMagallanes1414
SnchezMagallanes216T
SnchezMagallanes1049
SnchezMagallanes227
SnchezMagallanes278
SnchezMagallanes912
SnchezMagallanes924
SnchezMagallanes1912
SnchezMagallanes329
SnchezMagallanes1402
SnchezMagallanes1039
SnchezMagallanes955
Otates26D
Otates52
Otates32
SnchezMagallanes1414
SnchezMagallanes1936
SnchezMagallanes1422
SnchezMagallanes1939
SnchezMagallanes1421
Otates53
Otates17
SnchezMagallanes1418
SnchezMagallanes158

27

Workover
Duration(Days)
P
1
35
30
1
27
2
30
30
59
3
3
35
1
20
60
38
30
29
19
46
1
1
29
8
16
30
30

A
5
28
37
4
38
1
36
23
59
3
3
29
37
2
82
37
28
7
28
99
1
2
2
8
17
24
17

InitialOil
Production(BPD)
P
312
100
80
75
80
56
75
60
80
50
60
80
50
40
100
80
100
26
100
100
100
100
100
100
50
120
80

A
519
250
215
179
49
20
88
0
0
417
266
334
108
62
67
0
105
0.1
153
147
124
115
51
310
50
302
110

InitialGas
Production
(MMcfd)
P
A
0.3
0.4
0.1
0.2
0.1
0.2
0.1
0.1
0.1
0.1
0.1
0.0
0.1
0.5
0.1
0.0
0.1
0.0
0.1
0.3
0
0.3
0.1
0.4
0.1
0.2
0
0.1
0
0.1
0.1
3.3
0
1
0
0.1
0.2
0.2
0.2
0.1
0.1
0.2
0.1
0.1
0.2
0
0.2
0.7
0.1
0.1
0.2
0.4
0.1
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SnchezMagallanes926
SnchezMagallanes951
SnchezMagallanes953
S h M ll
1029
SnchezMagallanes948

30
30
11
11
1

44
10
9
4
6

120
120
75
75
50

145
245
109
85
104

0.1
0.2
0.1
01
0.1

0.2
0.6
0.1
01
0.1

SnchezMagallanes971
Otates501
Otates14
Otates37D
Otates52

30
5
30
30
6

53
8
14
31
2

120
250
100
75
75

26
143
179
120
0

0.2
0.5
0.2
0.1
0.1

0.1
0.2
0.2
0.1
0.9

Year

2007

2008

2009
2010

Table2.5MAJORWorkoversintheBlockMagallanes,Projected(P)vs.Actual(A)

Workover
InitialOil
InitialGas
Well
Duration(Days)
Production(BPD)
Production(MMcfd)

P
A
P
A
P
A
SnchezMagallanes214T
15
10
52
46
0.1
0.1
SnchezMagallanes272D
SnchezMagallanes973
SnchezMagallanes924
SnchezMagallanes1039
SnchezMagallanes1401
SnchezMagallanes273
SnchezMagallanes50D
SnchezMagallanes61
SnchezMagallanes237
SnchezMagallanes237
SnchezMagallanes953

13
30
30
20
20
11
16
18
17
9
13

13
44
29
0
41
30
0
0
11
30
1
0
35
450
0
0.4
16
0
126
0
11
50
176
0.1
7
42
38
0
9
50
52
0
17
49
50
0
9
50
82
0.1
13
40
107
0.0

Table2.6MINORWorkoversintheBlockMagallanes,Projected(P)vs.Actual(A)

0
0
0
0
0.1
0.1
0
0
0
0
0.1

2.5ProductionHistory

TheOtatesfieldwasdiscoveredinOctober1965withthedrillingoftheOtates1well,whichproduced
34APIoilandgasfromtheLowerMioceneEncantoformationatadepthof2,2772,284m.Theinitial
measuredproductionratewasQo=250bopd,Qg=0.27mmcfd,GOR=194m3/m3flowingthrougha
chokeof3/16andwithPtp=58kg/cm.

28

MagallanesBlockMatureFields

SouthRegion

In1968thefieldreacheditsmaximumproductionrateof7,500bpdofoilfromtwentyeight(28)wells.
Theoilproductionwasmaintainedabove6,000bpduntil1973whenasteepdeclinewasexperiencedin
allreservoirs.

In1981,waterinjectionwasinitiatedinthedepletedreservoirs,whichhelpedreducetheoildeclineand
obtainincreasesofalmost3,000bpdin1988.Later,therewereincreasesinboththeGORandthewater
cut to 575 m3/m3 y 60%, respectively. The large volumes of injected water caused increased water
saturation in some areas of the reservoirs forcing the closure of some wells because of high water
production(Figure2.7.)

29

MagallanesBlockMatureFields

SouthRegion

Figure2.7HistoricalproductionbehaviorfortheFieldOtates,informationasofSep/30/2010

Exploratory drilling in the field Sanchez Magallanes was started in 1957 with the drilling of Sanchez
Magallanes3well,whichbeginproductiononDecember27,1957.Usingadualcompletion,itproduced
oil of 33 API and gas from three (3) sands: 12921294, 12481251 m (lower zone) with an initial
productionof277bpd,GORof98m3/m3andTPpressureof28kg/cm2and11671183m(upperzone)
withinitialoilproductionrateof138bpd,GORof86m3/m3andTPpressureof32kg/cm,allfromthe
EncantoformationoftheLowerMiocene.

Thefirstphaseoftheexploitationofthefield,between1957and1966,wascharacterizedbyamassive
drillingprogram.Atotalof383wellsweredrilledachievingamaximumproductionrateof26,000bpdof
oiland32.5MMcfpdofgas.Between1966and1967,asteepproductiondeclinewasexperienceddue
to presence of paraffin and sand in the wells. This problem was solved by placing sieves and using
30

MagallanesBlockMatureFields

SouthRegion

chemical products. Production was reestablished and reached 28,000 bpd of oil and 34.0 MMcfpd of
gasbetween1969and1972.

Beginning in 1973, the field showed an almost constant decline, with an increase in water production
andGOR,untilproductiondroppedto7,900bpdofoiland12MMcfpdofgas.Forthatreasonin1978a
waterinjectionsystemwasinstalledforthereservoirsthathadexperiencedthelargerpressuredrops
(depressured wells.) The later observed behavior showed a medium response to the water injection
despitethelargeinjectedvolumes(lowefficiency).Thesestrongperiodicvolumesofinjectedwatermay
have contributed to the considerable increase in the water cut due to premature emergence of the
waterintheproducingwells.

In1986,sixwellswerecompletedinawetgasreservoirsix(6)wellsthatproduced21MMcfpdofgas.
The reservoir experienced pressure drop and within a year only three (3) wells were producing 5
MMcfpdfromthereservoir.

Thefieldcontinuedtoshowasteadydeclineandthenumberofactivewellsdecreaseduntil2003when
an infill drilling program was initiated in the Southern portion of the field which resulted in a small
increaseinproduction(Figure2.8.)

31

MagallanesBlockMatureFields

SouthRegion

Figure2.8HistoricalproductionbehaviorfortheFieldSanchezMagallanes,informationasofSep/30/2010

2.6InfrastructureFacilities

The infrastructure for management of the production of oil and gas of the fields in the Block is as
follows. Otateshasaseparator(separationbattery)andonecompressor.Ithasnodehydrationplant.
ThecurrentproductionofOtatesis3,133bpdofoilwithawatercutof21%and8.67MMcfpdofnatural
gas.

SanchezMagallaneshastwo(2)separators(Magallanes1and7)andanadditionalfour(4)separation
batteriesnotoperating(Magallanes3,4,5and6).Italsohasacompressionstationinoperationandan
injectionplantoutofoperation.Thefieldcurrentlyproduces3,700bpdofoilwithawatercutof22%
and4.92MMcfpdofgas.

32

MagallanesBlockMatureFields

SouthRegion

Themixtureofoil,gasandwaterproducedbythewellsflows,viacollectionpipes,tothebatteries.Gas
isseparatedfromtheliquidsusingthetwophaseseparatorsatapressurebetween2and4kg/cm2and
itpassesthroughaprimaryrectifierandthentothecompressionstations.

The oil is stored in tanks and then pumped, using oil lines to a dehydration plant in a central gas
processingcomplexnamedComplejoProcesadordeGasLaVenta(CPGLV)locatedinLaVenta,Tabasco.
ThewaterisdisposedusingthewaterinjectionplantoftheCincoPresidentesfieldtobereinjectedinto
reservoirsbeforetreatment.ThedehydratedoilismeasuredandpumpedtostationPalomas.

Figure2.9SeparationbatteriesforthemanagementofOil

33

MagallanesBlockMatureFields

SouthRegion

Figure2.10Networkofprincipaloilpipeline

34

MagallanesBlockMatureFields

BelowispresentedtheinfrastructurecapacityoftheBlockMagallanes:

35

SouthRegion

MagallanesBlockMatureFields

SouthRegion

Table2.7TechnicalDescriptionandNominalCapacityofBatteryOTATES

36

MagallanesBlockMatureFields

SouthRegion

Table2.8TechnicalDescriptionandNominalCapacityofBatteryMAGALLANES1

37

MagallanesBlockMatureFields

SouthRegion

Table2.9TechnicalDescriptionandNominalCapacityofBatteryMAGALLANES7

38

MagallanesBlockMatureFields

SouthRegion

Generallyeachbatteryhasthefollowingequipment:

Wellheadfromincomingwells

Twophaseseparationandprimaryrectification

Fixedroofstoragetanks

Pumping

Auxiliaryservices

Theinformationonthetypeandcapacityofthecompressionstationsisshowninthetablebelow:

Quantity

Service
RECC/BN

Capacity
Recollection
(mmcfd)

Capacity
Pneumatic
Pumping
(mmcfd)

Otates

5/0

20

S.Magallanes

7/2

28

40

48

40

Compression
Station

14

Table2.10CompressionSystems

39

MagallanesBlockMatureFields

SouthRegion

Figure2.11CompressionStationsforGasManagement

40

MagallanesBlockMatureFields

SouthRegion

Figure2.12NetworkofPneumaticPumpingfieldOtates

41

MagallanesBlockMatureFields

SouthRegion

Figure2.13NetworkofPneumaticPumpingNORTHareaoffieldSanchezMagallanes

42

MagallanesBlockMatureFields

SouthRegion

Figure2.14NetworkofPneumaticPumpingCENTRALareaoffieldSanchezMagallanes

43

MagallanesBlockMatureFields

SouthRegion

Figure2.15NetworkofPneumaticPumpingSOUTHareaoffieldSanchezMagallanes

44

MagallanesBlockMatureFields

SouthRegion

2.7 FacilitiesManagement
ThemaintenanceoftheproductionfacilitiesofPEMEXisappliedinaccordancetospecificrequirements
ofeachtypeofequipmentandfunctionitperforms,withtheobjectiveofmakingsuretheyoperatefree
of failures, avoid risks to the personnel, the installations, the environment and the production at
competitive costs and in accordance with the strategic business plan. The CincoPresidentes Asset,
aligned with the strategic objectives of PEP to optimize the resources using improved maintenance
systems and processes, installed a system of maintenance administration known as SAM which, using
the integration of worldclass best practices, offers a model for standardization and optimization for
maintenance management. The SAM model is supported by four (4) phases of maturity of the
maintenanceorganization,beginningatstagezero,namedreactivemaintenance.
Thefourphasesare:

PlannedMaintenance
ProactiveMaintenance
Optimalmanagementoftheassets
Reliabilityfocuseddesign

Below, as an example are shown the maintenance plan of the main production facilities of the fields
OtatesandSanchezMagallanes.

45

MagallanesBlockMatureFields

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Table2.11YEARLYMaintenanceProgramsfortheseparationbatteries

46

MagallanesBlockMatureFields

47

SouthRegion

MagallanesBlockMatureFields

SouthRegion

Table2.12MONTHLYMaintenanceProgramsfortheCompressionstationOtates

48

MagallanesBlockMatureFields

SouthRegion

Table2.13MONTHLYMaintenanceProgramsfortheCompressionstationMagallanes

49

MagallanesBlockMatureFields

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3.BlockPotential
3.1HydrocarbonReservesandCumulativeProduction
AsofJanuary1,2010theSanchezMagallanesfieldhascumulativeOilproduction(Np)of182.6million
barrelsandcumulativeGasproduction(GP)of 201.7billioncubicfeet.OtatesfieldhascumulativeOil
productionof34.0millionbarrelsandcumulativeGasproductionof74.8billioncubicfeet.Wellspacing
rangesfrom150to400meters.

The certified remaining 3P reserves for the block are 92.7 MMb of oil and 93.4 Bcf of gas. The
cumulative production of oil at the same date is 216.6 MMb of oil and 276.5 Bcf of gas. Due to the
characteristics of the reservoirs that make up the Otates and Sanchez Magallanes fields and their
remainingreserves,thisblockhasalargeopportunityforpotentialdevelopment(Table3.1.)

REMAININGRESERVES OIL
Field

Reservoir

OriginalVolume
@S.C.

Np

1P

2P

3P

MMb

MMb

MMb

MMb

MMb

S.Magallanes

Area4001000

174.4

32.9

11.4

22.6

22.6

Area600700

116.8

11.1

0.2

0.2

32.5

Areacentral

739.3

138.6

3.2

3.2

32.7

SubTotal

1,030.5

182.6

14.8

26.0

87.8

Otates

213.8

34.0

3.7

4.9

4.9

TotalArea

1,244.4

216.6

18.5

30.9

92.7

REMAININGRESERVESGAS
Field

Reservoir

OriginalVolume
@S.C.
Bcf

Gp

1P

2P

3P

Bcf

Bcf

Bcf

Bcf

S.Magallanes

Area4001000

140.5

60.2

13.3

23.6

23.6

Area600700

73.3

11.6

0.1

0.1

31.8

Areacentral

357.1

118.1

3.1

3.1

31.2

EncantoGH

45.7

11.9

Subtotal

616.6

201.7

16.5

26.8

86.6

Otales

485.9

74.8

5.4

6.7

6.7

TotalArea

1,102.5

276.6

21.9

33.5

93.3

Table3.1HydrocarbonReservesandCumulativeProductionBlockMagallanesasofJan/1/2010
50

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