THE CANTARELL PROJECT

• Jurisdiction: Derecho Internacional

Oil and Gas Development in Latin America
(Mar 1999)
CHAPTER 19D
THE CANTARELL PROJECT
James Brittain, Director DPS Project Finance
DEUTSCHE BANK SECURITIES
New York, New York

In order to enhance recovery and production rates from Mexico's largest offshore oil field, the Cantarell complex, Pemex decided to undertake a pressure-maintenance program. After an examination of different alternatives, Pemex chose nitrogen injection as being the most technically suitable and cost-effective. Implementation of the nitrogen injection program would require the construction of a standalone nitrogen production facility and associated infrastructure facilities to deliver compressed nitrogen to an offshore Pemex terminal (the Cantarell Project).

For strategic reasons Pemex elected to contract the Cantarell Project out to third parties on a Build-Own-Operate (BOO) basis. In early 1997 Pemex requested bids for the construction and operation of the Project with a final deadline for bid submission of September 1997.

Deutsche Bank Securities (DBS) was selected by one of the consortium's interested in bidding for the...