Wavefront set to work with Pemex
Wavefront Technology Solutions has entered into a non-binding letter of intent with the Subdireccion Tecnica de Explotation, a department of Pemex PEP for the use of Powerwave in both single well stimulation and enhanced waterflood applications.
Under the terms, Pemex will initially carry out 13 single well stimulations and 36 Powerwave-driven waterfloods.
The decision on specific Powerwave installations will be solely determined by Wavefront based on the company's selection criteria, the company said in a statement.
Definitive agreements on an asset-by-asset basis in two operating regions are being drafted.
The objective for single well stimulations is to re-establish oil production beyond current rates.
Pemex said that in the event of successful well stimulations, Wavefront could be awarded a 5-year open contract without tender to supply Powerwave for well stimulation work.
Licensing fees for Powerwave well stimulations in a 5-year open contract are set at $4000 per day per well.
The objectives for Powerwave-driven waterfloods are to slow the rate of production decline and provide increased oil production.
Pemex said that, in the event of successful Powerwave-driven waterfloods, Wavefront could be awarded a 10-year open contract without tender to supply Powerwave for enhanced fluid injection.
Licensing fees for Powerwave-driven waterfloods in a 10-year open contract are set at $6000 per month per injection well.
Further details were undisclosed.