PEMEX Announces Recovery Strategy for Ayatsil Field

Following Ayatsil’s lacking performance, the NOC announced it will invest an additional US$5.5 billion to implement a secondary recovery strategy for the discovery located off the coast of Campeche bay. 

Ayatsil’s development plan has fallen short, extracting 43MMb less than originally estimated in 2022. Moreover, factors such as pandemic-related logistical challenges and lower-than-expected reservoir pressure have contributed to this underperformance. PEMEX's updated plan aims to increase production to 150Mb/d by 2030 through additional investments of US$12 billion. The strategy includes drilling new wells for water injection and production, with peak output projected for 2028-2030. 

PEMEX also reported plans to invest US$411 million in the Uchukil field located in the Gulf of Mexico. The field is estimated to contain around 359MMb of crude oil, while the NOC aims to boost output to about 69Mb/d.

The company’s plan to increase crude oil reserves was made possible in 2022, when Repsol, a Spanish oil company, requested early termination to abandon three out of its six blocks in the Gulf of Mexico, including one near the Uchukil field.  

In related news, CNH approved the state-owned company's onshore exploration well in Veracruz and an appraisal program for three discoveries in the A7.BG field by Pantera Exploración y Producción in the Burgos basin.

Recently, PEMEX submitted its 2022 Annual Report to the National Banking and Securities Commission and the Mexican Stock Exchange. The NOC filed the F-20 Form with the US Securities and Exchange Commission, further solidifying its commitment to transparency and compliance.

According to the recently released financial data, PEMEX reported positive financial performance in FY22. The company achieved a net profit of MX$99.998 billion. In 1Q23, PEMEX continued its positive momentum reporting a net profit of MX$57 billion.

The company reported crude oil production of 1.87MMb/d. Notably, 543Mb/d of this production can be attributed to new developments. The NOC also highlighted the company's ongoing commitment to exploration and growth. The National Refining System, a key component of PEMEX's operations, processed an average of 835Mb/d during the same period.

By the end of 2022, PEMEX’s debt reached US$107.7 billion, with 38.7% of this amount due within the next three years. The NOC warned that its debt could increase in light of refinancing strategies and possible devaluation of the Mexican peso, further straining liquidity.