CNH has reported a significant decline in crude oil production by private companies operating in the country. According to the latest figures released by the commission, private production has reached its lowest level in the past seven months, putting self-sufficiency targets at risk.
According to Bloomberg Linea, the latest figures indicate that private companies produced 96.924Mb/d, down from the 93.655Mb/d reported in July 2022. Hokchi Energy, the third-largest private contributor to Mexico's oil and gas production, and Fieldwood Energy, felt the biggest impact of this production slump, with a significant decrease at Hokchi and the Ichalkil and Pokoch fields, respectively. Private companies currently account for 5% of the country's total oil production of around 1.65MMb/d. The remaining 95% is contributed by PEMEX.
This slump is now entering its fourth consecutive year. AMEXHI, reported that the volume of crude oil extracted by privates at the end of December 2022 was only 102.750Mb/d, which is significantly less than the government's target of 209Mb/d by the end of 2021. Furthermore, the completion of 20 hydrocarbon exploration plans and the early return of seven areas to the Mexican State will usher in a reduction of private exploration activity in the country, Andrés Brügmann, Vice President, Hokchi Energy, stated during the seventh National Oil Convention.
The Mexican government's goal to produce 2MMb/d by the end of 2024 seems to be a challenging target as production continues to fall short. To reach this target, the country needs a combination of increased production from both PEMEX and private companies to avoid dependency on imports.