Mexico’s national oil company Pemex has made its biggest onshore oil discovery in 15 years with a find in the eastern state of Veracruz, President Enrique Pena Nieto said Nov. 3.
Pena Nieto said Pemex made the discovery by drilling its onshore Ixachi well in the municipality of Cosamaloapan, and the overall field is believed to hold some 350 million barrels of proven, probable and possible reserves.
Pena Nieto, who pushed through Congress a sweeping energy reform in 2013 that ended Pemex’s decades-long monopoly, made the announcement at the company’s Tula refinery. He was flanked by his energy minister, Pemex’s chief executive and a range of other government and union officials.
The announcement confirmed a Reuters story from earlier Nov. 3. The onshore field’s original volume in place is estimated at 1.5 billion barrels of oil equivalent.
The light oil field should begin producing sooner as it is located where infrastructure already exists, Pemex said in a statement following the announcement, adding that the find could double in size.
The company said the discovery is similar in size to the field associated with the Zama well announced in July by Britain’s Premier Oil and its partners, U.S.-based Talos Energy and Mexico’s Sierra Oil and Gas.
Source: Pemex
Recommended Reading
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Endeavor Integration Brings Capital Efficiency, Durability to Diamondback
2024-02-22 - The combined Diamondback-Endeavor deal is expected to realize $3 billion in synergies and have 12 years of sub-$40/bbl breakeven inventory.
Exxon, Chevron Tapping Permian for Output Growth in ‘24
2024-02-02 - Exxon Mobil and Chevron plan to tap West Texas and New Mexico for oil and gas production growth in 2024, the U.S. majors reported in their latest earnings.
Patterson-UTI Braces for Activity ‘Pause’ After E&P Consolidations
2024-02-19 - Patterson-UTI saw net income rebound from 2022 and CEO Andy Hendricks says the company is well positioned following a wave of E&P consolidations that may slow activity.