Biggest onshore oil find in Mexico in 15 years by Pemex
Pemex says the light oil field will begin producing by the end of 2018, possibly the beginning of 2019.
Pemex discovery in Veracruz
Mexico’s President Enrique Pena Nieto said Mexico’s state-owned oil company, Pemex, made its biggest onshore oil discovery in 15 years in the eastern state of Veracruz.
The field located near the municipality of Cosamaloapan is believed to hold about 350 million barrels of proven, probably and possible reserves. Reuters reports the field’s original volume in place is estimated to be 1.5 billion barrels of oil equivalent.
Pemex CEO Jose Antonio Gonzalez Anaya told Reuters that the light oil field should begin producing by the end of 2018, or beginning of 2019.
Infrastructure is already established in the region, which will allow for quicker development of the field, according to a Pemex statement. The company added that the find could possibly double in size.
Gonzalez Anaya says he is not sure if Pemex will develop the field on its own or if it will find an equity partner. He says it is too early to provide a production forecast or a spending plan for the field.
“We’re just now announcing the field’s discovery, and we still need to delimit it as well as establish a development plan,” Gonzalez Anaya told Reuters.
The company says the oilfield is similar in size to the field associated with the Zama well announced by Premier Oil, Talos Energy and Sierra Oil and Gas.
In 2013, Pena Nieto pushed through sweeping energy reform, ending Pemex’ monopoly. Since then, the decade-long production slump has been turned around and billions of dollars of investments have been made in Mexico’s oil industry.
Pemex says it expects to see end 2018 with an average output of 1.9 million b/d. In 2014, Mexico hit peak oil production at nearly 3.4 million b/d.
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
