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Pemex Makes Shallow Water Discoveries in Gulf of Mexico

Pemex announcement of discoveries

By MarEx 2018-10-10 18:53:08

Pemex has confirmed the discovery of seven reservoirs in two new wells in Mexico’s Southeast Basin in the Gulf of Mexico.

The discoveries boost the company's reserves by more than 180 million barrels. The new wells are located at water depths of between 20 and 90 meters.

The company is currently evaluating six fields that could have a combined peak production of up to 210,000 b/d. and 350 MMcf/d of natural gas.

Pemex will soon begin developing its Xikin and Esah shallow water fields. Both fields were discovered in 2015 and hold a combined 360 million barrels of proved, probable or possible reserves. Pemex is also assessing its shallow-water Kinbe and Koban fields, discovered in 2011 and 2016 respectively. Both are expected to hold important quantities of hydrocarbons.

The combined fields combined could increase Mexico’s production by up to 210 million barrels of oil and 350 million cubic feet of gas a day. Mexico’s oil output has been in decline, falling 32 percent from its peak in 2004, according to the EIA. Despite this, Mexico remains one of the largest producers of petroleum in the world. It is also the fourth-largest producer in the Americas after the U.S., Canada and Brazil, and an important partner in U.S. energy trade.

According to Reuters, Pemex will need up to $10 billion in capital, including investments in oil rigs and pipelines, to develop new discoveries in the region.