Quesqui: Key PEMEX Field Despite Controversy, Declining Reserves
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Quesqui: Key PEMEX Field Despite Controversy, Declining Reserves

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Perla Velasco By Perla Velasco | Journalist and Industry Analyst - Fri, 03/03/2023 - 16:35

Some of PEMEX’s most important fields during this administration are Quesqui, Ixachi and Tupilco. Quesqui, discovered in 2019, is the most important asset, according to PEMEX CEO Octavio Romero Oropeza, since it holds 900MMBoe. Romero reported that Quesqui’s 15th well came online this week and the NOC plans to deploy 15 further wells. The investment destined for the development of Quesqui therefore stands at US$3.14 billion dollars for 2023 and 2024.

Toward the end of 2022, PEMEX’s Exploration & Production (PEP) division foresaw that by the end of 2022, Quesqui would be producing 250Mb/d of crude oil, roughly double what is being produced today and that gas production would reach 500MMcf/d.

The state company faced controversy last year after researchers found PEMEX had flared US$275 million worth of resources at Ixachi in three years and another US$67 million at Quesqui in two years. The state-owned company said it aims to end gas flaring at the field, which is currently done at a rate of 5Mcf/d.

Burdened by a huge debt, losses on refining and heavy financial support from the government, the NOC also faces declining oil reserves. Despite some efforts to develop deepwater projects, PEMEX has bet on its offshore activities, where it has the most experience.

Nevertheless, oil production continues to decrease regardless of federal support. While PEMEX reported a total production of 2MMb/d, seemingly reaching the 2MMb threshold promised by the administration, 456Mb/d corresponds to condensates. Regarding just oil production, PEMEX produced 7.12% less compared to the same period in 2022, making it one of the lowest production points since 2019, when the company produced 1.607MMb/d.

According to El Economista, the state company increased its spending by 19% but only reached an improvement in liquid hydrocarbon production of 1.6%. In 2022, PEMEX invested MX$467.3 billion (US$26 billion), of which 61.3% was destined for E&P activities.  Nonetheless, oil production in 2022 reached 1.785MMb/d on average, a 1.6% increase compared to 2021.

Photo by:   Twitter @Pemex

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