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News Article

Private Sector Produces Over 100Mb/d for the First Time

By Anamary Olivas | Mon, 06/27/2022 - 13:23

Private companies produced more than 100Mb/d of oil for the first time. The 21 private companies currently with activities already contribute 6 percent of the national crude oil production, which stood at 1.61MMb/d on average in May 2022. The production level breaks the record for Mexico’s private sector’s, providing reassurances regarding its productivity and capacity.

 

According to the CNH, May’s production represented a marginal month-over-month increase of 0.5 percent, or 9Mb/d. Year-over-year, crude oil production fell 4 percent, or 66Mb/d. Oil production is far from the levels seen during the same period in 2021. This can be directly linked to PEMEX and its collapse in production after a big explosion on the platform E-Ku-A2 at its main asset, Ku-Maloob-Zaap in August 2021, where 7 workers died and other 6 were injured.

 

PEMEX accounts for 94 percent of Mexico’s total production. Most of it comes from seven oil fields, which concentrate 51 percent of the total production, led by the Maloob, Zaap and Xanab offshore fields. The NOC has reduced its extraction of crude oil while increasing the production of natural gas condensates. However, these condensates are left out of international measurements of oil production. These numbers are contrasting with PEMEX's production goal, which was set at 1.9MMb/d by 2022.

 

As for the private sector, the Italian company Ente Nazionale Idrocarburi (Eni) led the production with its Miztón offshore field, recovering almost 5Mb/d. Another important contributor to oil production was Hokchi Energy, which also increased its extraction levels in May.

 

Even though the private sector increased its production, the goal of total production in the country is far from its objective, since the Mexican Association of Hydrocarbons Companies (AMEXHI) estimated a production of 209Mb/d for 2022. "It is very important to highlight the hard work that oil companies have done in these years, particularly during the pandemic, which has delayed production or canceled investments around the world. Nevertheless, the companies in Mexico are committed to their operations and all are complying with their work plans," said Juan Manuel Delgado, President, AMEXHI.

The data used in this article was sourced from:  
PEMEX, AMEXHI
Photo by:   Admiral Fox
Anamary Olivas Anamary Olivas Journalist & Industry Analyst