CNH Approves PEMEX’s Plans for Offshore Extraction

The National Hydrocarbons Commission (CNH) approved PEMEX’s modification of its Development Plan for the extraction of the Ixtoc field. The allocation currently has 18 wells, of which seven produce 31° API of medium oil. The field occupies an area of 40.13 km² in the Gulf of Mexico, approximately 90km northeast of Ciudad del Carmen, Campeche.

PEMEX aims to extract of 11.10MMb of oil and 28.52Bcf of natural gas. The total estimated investment is US$842.56 million, of which US$450.94 million covers operational expenses. The modification to the Development Plan was justified due to the increase in the approved investment and the change to produce more natural gas. 

CNH also approved a modification for the accelerated development of the Kayab field, moving the development from exploration to production without the evaluation phase. Kayab is located off the coasts of Campeche and Tabasco, with an area of 41.63km². This assignment will extract extra heavy crude of 8° API. CNH estimates that this field holds 500MMb of oil. The development will include various activities: 35 drilling and completions, four major repairs, 994 minor repairs and 352 well stimulations. It will also include the construction of six pipelines and three platforms, among other works.

PEMEX intends to retrieve 458.16MMb of oil and 49.39Bcf of natural gas. The NOC will invest US$18.37 billion.

As previously reported by MBN, during the current administration PEMEX has followed a path focusing mainly on debt reduction and investing in its already tried and tested methods by developing shallow and onshore projects. Despite the achievements in shallow water, experts have repeatedly advised the importance of deepwater investment, as well as unconventional plays.  However, it seems that the oil company is investing heavily in expanding its future production outlook via key fields like Lakach and Kayab, looking to offset declining production elsewhere.