Private crude oil production from the 111 contracts signed in bidding rounds since the Energy Reform will increase by 50 percent by 2020, according to the Mexican Association of Hydrocarbons Companies (AMEXHI). By the end of 2019, AMEXHI members should be producing 50Mb/d, which will rise to 75Mb/d at the end of 2020. By 2022, the goal of AMEXHI members is to reach 280Mb/d production.

“We said were going to produce 50,000 barrels by the end of the year, and here we are”, said AMEXHI Head Alberto de la Fuente.

De La Fuente explained that US$11.2 billion has been invested by the private sector  since the 2014 Energy Reform. Of this, US$4 billion was funneled into the collection seismic data, US$1.6 billion was for payments to PEMEX, US$1.9 billion to the Mexican Petroleum Fund and US$400 million for the National Hydrocarbon Commission (CNH).

Regarding President Andrés Manuel López Obrador criticism about “having no progress with exploration and production”, De la Fuente said most companies are on time and on budget, according to deadlines established in their contracts.

Head of the Business Coordination Council (CCE) Carlos Salazar pointed out that that when 280Mb/d private sector production is reached it will account for 20 percent of national production.

AMEXHI said CNH has approved investments for private oil companies for US$36.8 billion over the next 20 years, an amount that will increase significantly once major field development starts.