PEMEX’s Plan for the Campeche Bank
PEMEX announced that it is working on strategic projects to boost production and reduce flaring at its mature fields in the Campeche bank.
The NOC will increase wet sour gas processing from 700MMcf/d to 900MMcf/d at Macuspana, Tabasco. The company also plans to expand a plant to retrieve more nitrogen extracted from the Cantarell and Ku-Maloob-Zaap fields. With this plan, PEMEX aims to increase nitrogen extraction from 16% to 79% in Cantarell. The retrieved nitrogen will be injected into the fields to stimulate production.
AT the Ku-Maloob-Zaap cluster, PEMEX aims to reduce flaring and increase gas utilization to 98%. The company is currently working on finishing gas compression infrastructure at the Ku-Alfa platform to decrease flaring. PEMEX reported that this field represents 43% of its production and the company aims to maintain an 800Mb/d production for 2023. PEMEX stated that the gas compressors will come online on March 18, 2023.
PEMEX is facing oil production declines as it struggles with its large debt. Despite some efforts to develop deepwater projects, PEMEX has bet on its shallow-water activities, where it has the most experience. The company has received negative feedback as it heavily invests in refining, which has led it to generate losses
Earlier in 2023, PEMEX announced that it plans to spend US$12 billion on its environmental strategy, which includes a US$5.66 billion investment to phase out fuel oil. The NOC also announced that it will invest US$3.78 billion to increase the share of natural gas it captures.
Nonetheless, PEMEX has recently been accused of increasing its gas flaring despite its commitment to decrease this practice. The NOC signed a partnership with the US Environmental Protection Agency (EPA) and received US$2 billion in government funding to curb its methane emissions by 98%.