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Mexico's Balance of Conventional and Unconventional Resources

Sun, 07/01/2018 - 09:28

In what was a relatively stable period, from 2005-2013, the total amount of proven, probable and possible reserves in the country declined from an original 46.914 billion boe by only 5 percent to 44.529 billion boe. From that point until the end of 2017, the country suffered a dramatic decline, with a 41.9 percent reduction to a total of 25.858 billion boe. The strongest impact in the period 2013-2017 was on the amount of possible resources, which dropped by 50.4 percent, while proven resources declined by 33.9 percent.

Thanks to an uptick in activity with the entry of international players, major discoveries have already been made, including the Zama and Amoca fields with as much as a combined estimated 3 billion barrels uncovered. Adding this to the increase in the initiation of work programs, the country could soon stop and even reverse the declining trend in its reserves. Considering that over half of the resources in Mexico are located in unconventional plays, the stakes are high for Round 3.3, the first ever licensing round to offer unconventional resources.