New Record for PEMEX ReservesBy Paloma Duran | Fri, 11/13/2020 - 15:20
PEMEX has achieved its highest record in oil reserves with 1.927Bboe, a level that has not been reached since 2007. PEMEX said the incorporation of proven, probable and possible reserves (3P) during the López Obrador administration has been the result of new exploration strategies and the incorporation of 42 wells. It is expected that in 2021, there will be activities in 84 wells that will produce 2.1Bboe.
According to PEMEX, in 2020, 3P reserves increased 65 percent compared to 2018 records. The increase is due to greater well interventions and the reserves obtained from the 42 wells, which are the largest since 2009 with 75 wells, reports El Heraldo.
However, Mexico’s oil and gas wells are aging and as a result, the country will need to have greater investments in well interventions and maintenance in the coming years. The maintenance of 75 percent of the country’s wells could drive costs up to US$3 billion between 2021 and 2023, reported MBN.
PEMEX Director, Octavio Romero, said that from 2007 to 2017, the company had an average of 1.22Bboe in reserves. However, the average from 2019 to 2021 is expected to be 1.814Bboe. Romero said the company has proven its efficiency in exploration projects by being more commercially competitive and having a greater level of success against discovery costs than other international companies such as Petrobras, Shell, Equinor, Total, Chevron, BP, Eni and ExxonMobil, reported El Heraldo.
In an interview with MBN, Peter Griffin, Vice President and International Business Director of Gas Liquids Engineering, said the main business opportunity in Mexico at the moment is for private oil producers that are entering the market. Some of these reserves are small and located in areas that are difficult to reach. International companies have experience in developing resources that might be in a remote area or not connected to pipelines.
Romero said that a company that does not care to increase its reserves has no future. He mentioned PEMEX is gaining strength and its best performance is expected in 2021, based on strategic actions in accordance to the company’s business plan, reported El Heraldo.
In October, PEMEX said it would hit production of 2.296MMb/d by the end of the Lopez Obrador administration and that it would finish 2020 at 1.94MMb/d.
During a congressional committee, Romero said the short-term production target of 1.94MMb/d by the end of this year would also be a big win for PEMEX, which due to the pandemic delayed development plans on its priority fields and has seen its production decrease from 1.724MMb/d in January 2020 to 1.633MMb/d in August, according to MBN.