“The Ayatsil-A installation award from PEMEX is a direct result of the substantial local capabilities and operations of McDermott in Mexico, and our demonstrated track record of safe and reliable platform installations for PEMEX in the Bay of Campeche,” said Dominic Savarino, Vice President and General Manager, Americas. “Our unique ability to mobilize our versatile marine resources including the heavy-lift vessel, Derrick Barge 50, capable of lifting surface loads up to 4,400 tons, and the Intermac 600 transportation and launch barge was a critical component of the successful award for this fast-track installation project.”

The Intermac 600 will launch the 8,400-ton jacket and the heavy-lift Derrick Barge 50 will complete the installation of the jacket, a 3,400-ton deck and other platform components in waters 400 feet deep. The total weight of the facility is approximately 15,800 tons.

The Ayatsil field is the largest discovery for PEMEX to date and is expected to boost production for the country by 150,000 barrels of oil per day. This contract award follows the successful delivery of the Ayatsil-B eight-leg jacket and deck by McDermott in July of 2014.

• McDermott Awarded Bay of Campeche Ayatsil-A Installation Contract for PEMEX

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ICA Fluor was awarded a contract for Phase I of the Residue Recovery Project for the Miguel Hidalgo Refinery in 2013. This Phase II contract involves providing detailed engineering, procurement and construction (EPC) services for the 86,000-barrels-per-day capacity plant. It is the first package to be converted to the EPC stage under the open book established in the Phase I contract. The mechanical completion of the project is scheduled for the second quarter of 2018.

“This project is a major step in the modernization of Mexico’s oil processing facilities,” said Juan Carlos Santos Fernandez, director general of ICA Fluor. “We are proud to be in the position to support Pemex with our Mexican engineering and construction resources to advance the key goals set forth in its strategic plan.”

• ICA Fluor to Build $1.3 Billion Coker Plant in Mexico

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The Foster Wheeler contract value was not disclosed. The initial release of work, relating to detailed design and the procurement of long-lead items, will be included in the company’s third-quarter 2014 bookings. The balance of the agreed workscope is expected to be released in 2015.

The investment in the Salina Cruz refinery, in excess of US$500 million, is part of a significant clean fuels program being implemented by PEMEX as a result of the country’s recent Energy Reform. The objective of the program is to significantly reduce the sulfur content of diesel produced from 500 to 15 parts per million.

The ULSD project at the Salina Cruz refinery, which Foster Wheeler is executing in joint venture with Arendal of Mexico, is a complex upgrade which includes the major revamp of four diesel hydrodesulphurization units, the installation of new units for hydrogen production, sulphur recovery and sour water stripping, and significant upgrades to the utilities and offsites facilities.

“We have a proven global track record in safely and successfully delivering complex refinery revamps and clean fuels projects in Mexico. We look forward to strengthening our already excellent working relationship with PEMEX by bringing together this expertise to deliver outstanding results for this strategically important investment. We are delighted to be playing a key role in helping PEMEX to achieve its vision for a new future, for which the Energy Reform has been the catalyst,” said Roberto Penno, Chief Executive Officer, Global Engineering and Construction Group, Foster Wheeler.

• Foster Wheeler Awarded Engineering, Procurement And Construction Contract By PEMEX For Clean Fuels Project At Salina Cruz

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Pemex has awarded Saipem an EPCI contract for the development of the Lakach field, located 98 km southeast of Veracruz and 131 km northwest of Coatzacoalcos, at a water depth varying between 850 and 1,200 metres.

The scope of work of the contract involves the engineering, procurement, construction and installation of the system connecting the offshore field with the onshore gas conditioning plant. This includes two 73 km long 18-inch diameter flowlines for the transportation of gas, and a main umbilical approximately 50 km long. Also in the Lakach field, Saipem will develop the SURF facilities which include subsea equipment, infield umbilicals, flexibles and trees and control system installation. The project will be completed by the end of 2017.

Umberto Vergine, Saipem CEO, commenting on the new award said: "I'm very pleased about this new contract. This project is the first deep water development of Pemex and it shows the new potential in the oil & gas sector of a country where Saipem has been successfully operating offshore for more than 10 years. Being awarded such an important contract shows we have been able to strengthen our relationship with Pemex after the difficulties of last year".

Saipem has also been awarded a Transportation & Installation contract by Protexa for the installation of various offshore structures, including two platform decks of around 3,000 tonnes each. The platforms are located in the Bay of Campeche in Mexico and are part of the development of Pemex in shallow waters.

• Saipem awarded new offshore E&C contracts in the Gulf of Mexico totalling $750 million

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The project will be executed in two phases. Phase I will include detail engineering and procurement of long-lead items and Phase II will comprise the rest of detail engineering, procurement, construction and commissioning. The $80 million contract awarded to Samsung Engineering is for Phase I which will be executed on an OBCE (Open Book Cost Estimation) basis.

The project site is located in Salamanca 250 km northwest of Mexico’s capital, Mexico City.
Samsung Engineering’s design will include the new HDS (hydrodesulfurization) unit with the capacity of 38,000 BPSD and the revamping of an existing HDS unit with the capacity of 53,000 BPSD. The initial engineering phase of the project is expected to be completed in September of 2015.

Choong Heum Park, President and CEO of Samsung Engineering stated: ” This contract is a result of our exceptional project execution capabilities and the trust we built with our client PEMEX throughout previous projects. With the understanding of the Mexican market and the successful completion of previous projects, Samsung Engineering hopes to continue a successful long-term partnership with PEMEX.”

PEMEX is expected to release modernization projects for existing refineries in the near future. Samsung Engineering hopes that this award leads to a bright future with PEMEX as partner.

• Samsung Engineering Awarded PEMEX Salamanca Refinery Plant Contract

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This contract includes engineering, procurement, construction and commissioning of three new refining units: diesel hydrodesulphurisation unit (30,000 bpd), hydrogen production plant (25 Mcfd) and sulphur recovery plant (150 tpd); as well as modifications to an existing hydrodesulphurisation unit and the integration of the
facilities beyond the battery limits for these plants.

This project is part of the development and updating plans that Pemex Refinación is carrying out, with investments of $5,500 million, within the Fuel Quality Project at their Refineries throughout the country, to produce and supply diesel with a maximum sulphur content of 15 parts per million (ppm), which represents a reduction of 97% to meet environmental standards. Similarly, air quality will be improved by reducing
emissions of greenhouse gases by more than 12,000 tons per year.

These works will have a very positive impact in areas where refineries are located generating 12,000 direct jobs and 31,000 indirect jobs.

The contract was awarded under the Open Book method, and will be implemented in two phases. The first phase, costing approximately $50 million, includes the execution of a basic design (FEED), a detailed estimation of the investment cost and the purchase of long-term delivery equipment. This first phase will take 12 months.

The second phase is project implementation, including detailed engineering, procurement of equipment and materials, construction and commissioning, under the turnkey model, with an estimated impact exceeding $500 million, and an execution period of 27 months.

This Project provides continuity to TR's experience in Mexico, where it has recently completed several important refinery projects for Pemex Refinación, at this same site.

• Pemex Refinación awards TR a new project at the Minatitlan Refinery

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To reduce air pollution caused by emissions of sulfur oxide, nitrogen oxide, and particulate matter, PEMEX is promoting the use of low-sulfur diesel fuel and gasoline. This project involves the construction of an ultra-low-sulfur diesel fuel plant at the PEMEX Cadereyta refinery complex, which is located in Nuevo Leon state in northeastern Mexico. The new plant will produce ultra-low-sulfur diesel fuel from naphtha purified at the Cadereyta refinery. This facility will have the capacity to produce 35,000 barrels per day of this desulfurized fuel, and is scheduled to come online in the first half of 2017.

For the monitoring and control of this plant's hydrodesulfurization unit and sulfur recovery unit, Yokogawa will deliver the CENTUM® VP integrated production control system, the STARDOM® network-based control system, the ProSafe®-RS safety instrumented system for shutting down the plant under abnormal conditions, the Exaquantum™ plant information management system and other solution-based software packages, the GC8000 process gas chromatograph for analyzing gas composition, and a variety of field instruments for flow measurement. Yokogawa de Mexico will be responsible for installation and engineering, and will also provide support with commissioning and the training of plant operators. Installation of these systems and products is scheduled to be completed by the first half of 2015.

• Yokogawa Receives Order to Provide Control System for New PEMEX Ultra-low-sulfur Diesel Fuel Plant

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Unfortunately, as a result of this incident, a worker named Renato Castillo Palacios died.

Eleven workers are being treated at the Regional Hospital of PEMEX: Paul Felix Lopez, Marco Antonio Perez Barron, Leura Nicolás García, Luis Gerardo Monreal Ahumada, Villagrana Gabriel Martinez and Jose Jesus Flores Salas.

Also, Juan Carlos Alanis, Carlos Ruíz Vázquez, Daniel Castillo Roberto Morales and Wong Refugio Morales, who also receive specialized medical care, and Job Carrillo Garcia, who was with dehydration from heat

Note that the coking plant was out of operation for maintenance work being carried out at the time of the accident.

Petróleos Mexicanos expresses its deepest condolences to the families of worker Palacios Castillo.

Pemex Refining technicians are analysing the incident to determine the root cause of the accident.

• Accident at the coking plant in Madero Refinery

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McDermott was awarded the contract in 2012 and provided engineering, procurement, fabrication, pre-commissioning, load-out and sea fastening of the Ayatsil-B eight-leg jacket and deck, weighing approximately 11,535 tonnes in water 115 meters deep.

“McDermott is proud to successfully deliver this jacket and deck to PEMEX,” said David Dickson, President and Chief Executive Officer. “During the project, more than 540 personnel at our Altamira yard worked safely to complete the structure for the growing Mexican offshore market.”

McDermott completed the engineering from its network of specialist in-house engineers in Houston and Mexico City, with fabrication from its yard in Altamira, Mexico.

McDermott is contracted to provide training for PEMEX personnel for operation and maintenance of the Ayatsil-B facility. The platform is one of four to be used, along with an FPSO, to develop heavy oil from the Ayatsil field in the Bay of Campeche.

• McDermott Announces Successful Completion of Ayatsil-B Drilling Platform in Bay of Campeche

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The director general of Pemex, Emilio Lozoya Austin, stressed that this is a strategic project that seeks to make optimal use, from the economic point of view, the new infrastructure Pemex to reduce transfer time of hydrocarbons to the Pacific coast while making the most of business opportunities that market conditions and geographic location of the Isthmus of Tehuantepec become possible.

• Operations Start on Trans-Isthmus Corridor to transport fuels

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The Foster Wheeler contract values were not disclosed and were included in the company’s fourth-quarter 2013 bookings.

“These wins reflect our strong relationship with Pemex and our growing capabilities and presence in Mexico,” said Roberto Penno, Chief Executive Officer, Foster Wheeler Global Engineering and Construction Group. “Foster Wheeler brings to these projects extensive experience in the design and delivery of retrofits to delayed cokers, a robust track record in executing projects in Mexico, and impressive technical expertise in heavy crude processing.”

• Foster Wheeler Awarded EPC Contracts By Pemex For Coker Slide Valves At Cadereyta And Madero Refineries In Mexico

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The fifth contract for the recently acquired jack-up drilling unit, Prospector 3, renamed West Titania, is being processed for approval by Pemex and finalization is expected to take place second quarter 2014.

Each contract is for a firm term of approximately 6 years and total revenue potential from the five contracts exceeds US$1.8 billion.

Additionally, Seadrill is pleased to announce the establishment of SeaMex Ltd. (SeaMex), a 50/50 Joint Venture with an investment fund controlled by Fintech Advisory Inc. ("Fintech"). Fintech is a private investment manager founded in 1989 that has a strong investment record and operation in Latin American countries. SeaMex has been formed for the purpose of owning and managing the jack-up drilling units working for Pemex as well as to develop and pursue further opportunities in Mexico and other Latin American countries. The gross proceeds for the sale of 50% of the five rigs to our partner is expected to be around US$488 million and will result in a gain recordable in the first half of 2014.

Per Wullf, Seadrill CEO commented, "This opportunity to expand our relationship with Pemex was partly developed on the back of Seadrill's successful operations with our ultra-deepwater semi-submersible West Pegasus in Mexico.

The long term nature of these contracts and the establishment of SeaMex, will create economies of scale in the region. Seadrill sees recent developments in Mexico such as new petroleum legislation, Pemex' expansion plans and recent large deepwater discoveries as supportive to the great opportunity to expand business within the country.
By using the Joint Venture to build up a strong local independent organization with close proximity to our customer, strong focus on education, and a high degree of local content, we expect to be able to create an efficient, high quality, and more cost effective organization. Over time, this will position Seadrill better than a centrally driven organization in what we see as a very attractive market. At the same time, a strong focus on localization benefits the Mexican labor market, the Mexican society, and our clients."

• Seadrill secures contracts for multiple jack-up units in Mexico

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FMC Technologies' scope of supply includes surface wellheads and production trees, as well as installation and supervision services for Pemex's operations in its Southwest Marine Region of the Gulf of Mexico. The equipment will be supplied from FMC Technologies' operations in Mexico.

"We appreciate the opportunity to extend our support of Pemex," said Johan Pfeiffer, FMC Technologies' Vice President, Surface Technologies. "FMC Technologies has historically played a significant role in Pemex's developments, and this new award expands that relationship."

• FMC Technologies Awarded $64 Million Contract From Pemex

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ICA Fluor will be responsible for the basic and detailed engineering for the process plants, auxiliary services and integration works required to increase the refinery’s distillate production capacity from 63 to 80 percent.

This is the first phase of a mega-project announced by Pemex to increase national production of higher value distillates through the reprocessing of products such as gasoil (diesel). Pemex expects its total investment to be approximately $3.5 billion.

“This project is a major step in the modernization of Mexico’s oil processing facilities, and we are proud to be in the position to support Pemex with Mexico-based engineering to advance the key goals set forth in their strategic plan,” said Juan Carlos Santos Fernandez, director general of ICA Fluor.

• ICA Fluor Awarded Pemex Contract for Miguel Hidalgo Refinery in Mexico

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The Phase I project The Ramones, whose investment will be 600 million, will run between the towns of Camargo, Tamaulipas, and Los Ramones, Nuevo Leon, and provide a capacity of one billion cubic feet per day (MMcfd) from its into operation in December 2014, capacity will increase to two thousand MMcfd in December 2015, once you add two compression stations.

With the participation of vendor product Tubacero as The Ramones Phase I marks the commitment of the Government of the Republic to boost the competitiveness of Mexican industry, the growth of the national economy and the country's development.

Thus, Pemex recognizes the capacity and quality of Mexican industry to provide necessary inputs to the development of infrastructure projects.

The strategy developed supply of natural gas by Pemex includes actions in the short term, such as liquefied natural gas imports, and in the medium term development of infrastructure projects to ensure the supply of natural gas.

• The proposed Phase I will Ramones border to Nuevo Leon Tamaulipas

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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.”

• GE Signs $84 Million Agreement with PEMEX for Deepwater Exploration Projects in the Gulf of Mexico

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The Company is also providing an update on its previously disclosed expected first quarter results. The current expectation is that the first quarter results will be lower than those estimated during the fourth quarter 2012 earnings conference call but still significantly improved over first quarter of 2012. The primary reasons for the adjustment in estimate include zero utilization days in March for the dive support vessel Texas in West Africa due to the unexpected cancellation of its contracted work that was previously scheduled for the month due to a change in the client’s project plans, higher than expected employee medical costs, and lower than expected pricing for surface diving services in the U.S. Gulf of Mexico.

• Cal Dive Awarded Pemex Contract and Provides First Quarter 2013 Market Update

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Craig Muir, Managing Director of ECS, commented: “I am delighted that Petrofac’s Engineering & Consulting Services business has been selected to support such a significant project for PEMEX with this its first major deepwater development. PEMEX will benefit from the full breadth of Petrofac’s specialist subsea pipeline consulting and engineering services in addition to our well management capabilities. We look forward to working closely with PEMEX on this significant project and further building Petrofac’s presence in Mexico.”

• Petrofac Awarded Deepwater Project Offshore Mexico

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With a total of 170 oil producing wells in operation in December this field reached peak production of 865,000 barrels per day and 349 million cubic feet of gas.

In 2012, KMZ contributed a third of national output, so that PEMEX has a strategic importance. Under its operation is based on a rigorous reservoir management plan, has become a role model to capitalize experiences of other international fields.

The support of this enormous project is supported by the best reservoir management practices, using models and numerical simulation of flow behavior in wells and facilities.

Were made parallel major works for the management and utilization of gas, installing compression equipment, pipelines and interconnections for operational flexibility.

These actions have increased the rate of uptake of the active gas rising from 87 percent in 2007 to just over 98 percent late last year.

Furthermore, Pemex Exploration and Production has established an implementation plan for the project in the period 2013-2017, which will maintain the production platform of 850 thousand barrels per day of crude.

The vision of this project is the development and exploitation of deposits in a rational, maximizing the recoverability of its fields and economic value.

This production complex consists of five heavy oil producing fields: Ku, Maloob Zaap Bacab and Lum, which are located in the territorial waters of the Gulf of Mexico, a distance of 105 miles, northwest of Ciudad del Carmen, in a water depth between 60 and 90 meters.

• Ku-Maloob-Zaap in December reached its maximum oil production

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The scope of work includes the detailed engineering, procurement, construction, training, commissioning and start up for the recondition of the combustion gases system of the No. 1 catalytic plant (FCC) of the refinery.

Technip’s operating center in Mexico City, Mexico, will execute the project with the support of Construcciones Industriales Tapia for construction work. The project is scheduled to be completed in the second semester of 2014.

Emiliano Pescador, Technip’s Country Manager in Mexico, stated: “This is our first EPC contract awarded by PEMEX Refinación. We managed to capture it thanks to the acquisition of Stone & Webster process technologies and associated oil and gas engineering capabilities and its extensive experience and state-of-the-art technology portfolio. This contract will also be the first project to be managed from our recently opened Mexico City office.”

• Technip awarded contract for a refinery in Mexico

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