PEMEX Drilling Activity Falls Amid Production Decline

PEMEX completed drilling of only 17 wells during 1Q25, the lowest figure for a similar period in 30 years, according to the company’s quarterly financial report.

Between January and March, the NOC finished drilling 12 development wells and five exploratory wells, as reported by El Economista. This total mirrors the number of wells completed in 1Q95 and marks a significant decrease from recent years. In 1Q24, PEMEX drilled 41 wells. In 2020, the figure reached 68, the highest number for a similar period during the previous presidential administration.

The drop in drilling activity comes as PEMEX faces delays in supplier payments and a wider contraction in its operational capacity. Industry representatives in Mexico’s southeast oil-producing regions have publicly noted that overdue payments have disrupted drilling and service provision.

The decline in well completions also coincided with a reduction in liquid hydrocarbon output. Production of crude oil and condensates fell by 11.3% year over year in 1Q25, down by over 200Mb/d. The average output for the period stood at 1.615MMb/d, the lowest reported since 1979.

In its financial disclosure, PEMEX attributed the production decline to multiple factors, including the natural decline of mature fields, delays in the completion of technically complex wells, reduced initial yields in the Xanab field, equipment failures in Ayatsil, and delays in offshore infrastructure. The company also cited the suspension of critical services in the Yaxché field and adverse offshore weather.