PEMEX Strengthens Refining Capacity

PEMEX’s refining capacity has increased, reaching a processing rate of 1.7MMb/d as López Obrador’s administration nears its end. This growth represents a 233% increase compared to December 2018, driven by the rehabilitation of the National Refining System (SNR) and the integration of the Deer Park refinery into its operations. Octavio Romero, Director General, PEMEX emphasized the importance of this progress in improving the availability of fuel in the domestic market.

In 2Q24, fuel production for transportation, including gasoline, diesel, and jet fuel, reached 750Mb/d. This milestone was achieved despite repairs at Deer Park, which reported a solid performance with an average processing rate of 262Mbd/d surpassing last year's figures. The increase in refining capacity has enabled PEMEX to boost the production of fuels by 111% since the beginning of the administration.

With the stabilization of operations at the Olmeca refinery and the addition of new coking units in Tula and Salina Cruz, PEMEX could advance toward meeting the fuel self-sufficiency goals set by the federal government.

However, various challenges in the production sector still hinder PEMEX's potential. In 2Q24, the NOC experienced a decrease in production from mature fields by 35.1Mb/d, impacting the company's results, as reported by MBN. The decline in liquid hydrocarbon production between 2Q24 and 1Q24 is primarily due to decreased production from mature oil fields.

PEMEX's strategic push for increased production is focused mainly on mature fields such as the Ayatzil, Cantarell, Ku Maloob Zaap, and Balam fields. Leveraging advanced technology holds promise for augmenting reserves and maximizing output potential in these key assets. However, there are numerous challenges that these wells encounter when implementing recovery systems, such as well integrity, unwanted fluid and solid production like water and sand, and formation damage.