Oil Production Still Winding Down

In January 2023, PEMEX reported a total production of 2MMb/d, seemingly reaching the two-million-barrel threshold promised by the administration. However, the NOC’s production figures include natural gas condensates. This is not a common practice in the hydrocarbons sector as stipulated by the Petroleum Resources Management System.

Out of the 2MMb/d reported, 456Mb/d corresponds to condensates. Regarding just oil production, PEMEX reported 1.564MMb/d, a 7.12% decrease compared to the same period in 2022 and a 0.5% increase compared to 2022. Last year the state company lowered its 2 million projection to 1.8MMb/d, but the company did not reach it either.

The oil production reported in January and December stands at one of the lowest production points since 2019 when the company produced 1.607MMb/d.

Meanwhile, private production increased 0.89% in January compared to December, 2022. This increase was largely supported by the Hokchi field. In December, Hokchi reached a record production of 27.483Mb/d, delivering 26.685Mb/d in January. Last year Hokchi’s operator ENI deployed its Miamte Floating Production, Storage and Offloading (FPSO) vessel in the Amoca, Mizton and Tecoalli fields, which progressively increased the IOC’s production.

After dragging down private production numbers, Fieldwood Energy plans to add 7Mb/d by putting another one of its wells that was being repaired online. The company also plans to drill more wells at the Ichalkil field.

Wintershall Dea Seeks Options Outside Russia

The international oil company Wintershall looks to expand its operations further in Norway, North Africa and Latin America. As sanctions to Russian oil begin to take its toll in oil operations in the country, the German IOC reported a net loss of Є4.8 billion (US$5.09 billion) in 2022 after losing access to its operations in Russia. The company abandoned Russia earlier this year. While the company has expressed its interest in Argentina it also stated that it would consider more investments if it were not for the currency exchange.