DRILLING AND WELL COMPLETION

Mexico intensified its drilling and well completion activities during 2018. If we compare 1Q17 with 1Q18, the country registered a 54.1 percent increase in drilling equipment operations, having 37 pieces of drilling equipment in place during 1Q18 and 24 during 1Q17. Regarding drilled wells, Mexico also registered an increase, drilling 62 wells in 1Q18 and 24 in 1Q17. Furthermore, from these drilled wells, 52 were completed during 1Q18 and 29 during 1Q17. Looking beyond these numbers, what can be expected regarding drilling and well completion activities during 2019? CNH’s message regarding already signed E&P contracts is clear: these contracts will remain operational and untouched by political risk. This means that Mexico can expect drilling and well completions to advance significantly during 2019, as well as the development of a stronger supply chain surrounding these activities. A few years from now, Mexico will experience a boom in its deep and ultra-deepwater activities, which means that the best drilling equipment and well completion complementary services will be needed to untap the country’s hidden treasure.