The Discovery of Quesqui

In mid-December, Mexico announced the discovery of the country´s biggest oil discovery in three decades. The Quesqui oil field is located in the Gulf state of Tabasco. “For the rating agencies, this is good news in relation to PEMEX,” said PEMEX Director General Octavio Romero Oropeza, who added that the field is the single-most-important find for the company since 1987.

The estimated 3P reserves are significant, according to PEMEX’s data: 500 million boe. Furthermore, Romero stresses that an additional 200 million boe is within reach by simply drilling another well discovered in the same area. Production is set to start in January 2020, when the adjacent Quesqui-1 DEL will be finished. As of Dec. 12, 2019, CNH had not confirmed parts of the provided information, including the API gravity of the field. Nonetheless, due to its location in the Southeast Basin, there is a potential for light crude of around 40 API. In 2020, PEMEX estimates it will see 69Mb/d from the field, which should be ramped up to 110Mb/d in 2021. “Productivity-wise, it seems to be smaller than Ixachi,” said Pablo Medina, vice president of Welligence Energy Analytics, an energy consultant. “There hasn’t been a development plan submitted for it, so it’s too early to talk about reserves based off one single well.”

If verified, PEMEX estimates it might even only spend US$6 for each barrel of oil, yielding US$50 per barrel. With an estimated investment of US$667 million, the NOC will undoubtedly attempt to make this major discovery a platform for its much-needed transformation. As President López Obrador states: “This is the new policy. To get to work where we have more certainty and experience. To produce. The new field, Quesqui, is surrounded by infrastructure that is interconnected. It will cost up to US$6 a barrel. That means more profit for PEMEX and for the country.”

With this new discovery, PEMEX's director is confident that production in the region will increase substantially. “With the new discoveries and the accelerated development of the new fields, we estimate production in the region to reach 215 to 500 thousand barrels per day by the end of this administration,” he said.