PEMEX to Increase Production in 2023
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PEMEX to Increase Production in 2023

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Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Mon, 03/27/2023 - 12:54

PEMEX expects liquid hydrocarbon production to average 2MMb/d in 2023. Director general Octavio Romero presented this target as part of the company's strategy to achieve energy self-sufficiency. 

The company also aims to increase its production of hydrocarbon gas from 4.224Bcf/d to 4.811Bcf/d by 2024, while reducing the national refining deficit of 901Mb/d in 2018 to only 34 Mb/d by 2024. In November 2018, only 300Mb/d of gasoline, diesel and jet fuel were produced, compared to the 720Mb/d produced in March 2021. The improvement was attributed to the contributions from the National Refining System and the Deer Park Refinery.

Moreover, 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 included natural gas condensates. This is not a common practice in the hydrocarbons sector as stipulated by the Petroleum Resources Management System. PEMEX also announced that it will retrieve up to 180Mb/d, 10% of national production, from the Zama field.

Talos Energy Faces Challenges in the Development of Zama

Talos Energy must submit a development plan for the Zama oilfield by end-March 2023. PEMEX’s assignment as the operator by the Mexican Ministry of Energy has complicated matters, but Talos and partners are better placed to handle the necessary infrastructure. Issues around operatorship, commercial terms and redetermination need to be resolved before a final investment decision (FID) can be made. Zama's development stalled indefinitely due to the dispute, with development costs estimated between US$4 billion and US$5 billion over the next 30 years. Budgets are constrained; the government is using the company's extraordinary revenue to support subsidies and battle the NOC’s debt.

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