Mexico's Liquid Hydrocarbon Production Increases Sharply in July

In July, the national production of liquid hydrocarbons averaged  1.92 million barrels per day (b/d), marking an increase of 69,000 b/d when compared to the same month in 2022, as reported by the National Hydrocarbons Commission (CNH).

PEMEX, the state-owned oil company, maintains a dominant share, accounting for 95% of the total national production at 1.81million b/d. Among these figures, 1.72 million barrels are attributed to 172 assignments, while 93,000 barrels are a result of migrations.

Conversely, private operators contribute 5% of production, equivalent to 104,000 b/d. This figure comprises 26,000 barrels from four migrations, 9,000 barrels from two farmouts and 69,000 barrels from rounds of petroleum auctions.

In July, CNH reported that there were 6,964 producing wells across the country, consisting of 4,163 oil and associated gas wells and  2,801 non-associated gas and condensate producing wells.

In terms of the primary producers of liquid hydrocarbons, CNH said Maloob led the way with an average production of 294,000 b/d, followed by Quesqui with 190,000 b/d and Zaap with 182,000 b/d. Other significant producing fields included Tupilco Profundo with 131,000 barrels, Ayatsil with 89,000, Xanab with 64 and Balam with 6,000 b/d.

CNH recently entered into a collaboration agreement with the National Natural Gas Control Center (CENAGAS) aimed at facilitating the exchange of statistical and technical information to bolster the national development of the oil and gas industry.

Agustín Díaz Lastra, President Commissioner, CNH, highlighted the significance of this agreement as it strengthens inter-institutional collaboration and promotes best practices, aligning with the energy policy objectives of the country.

On the other hand, Abraham Alipi Mena, Director General, Cenagas, underscored the importance of natural gas imports in the context of Mexico’s energy transition and overall development. He also pointed out that this agreement paves the way for expanded collaboration between both institutions. He hinted at the possibility of signing an agreement for the conversion of the JAF Field into a gas storage facility through a bidding process.