Refinery Explosion; Oil Production Surges: The Week in Oil & Gas

As the oil industry experiences a transformation driven by Asia, PEMEX is facing challenges in assuring its workers of their safety following the explosion at its refinery.

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PEMEX Announces Recovery Strategy for Ayastil Field  

In response to Ayatsil's underperformance, the NOC has announced an additional investment of US$5.5 billion to implement a secondary recovery strategy for the field off the coast of Campeche Bay.

Asia Reshapes Oil Industry

Asia is reshaping the global oil industry, with Russian oil exports surging in recent months. Amid changing dynamics, some Asian countries have steadily increased their oil exports, while restrictive customs policies have driven said exports primarily to China and India. This shift in oil trade patterns is reshaping the global energy landscape.

PEMEX Reports Fire, Nine People Injured

An explosion occurred at a PEMEX LP gas pipeline, resulting in injuries to nine individuals. This incident marks the third major occurrence reported by the company this year. The explosion took place at kilometer 821+968 of the 14in Santa Ana-Palmillas Pipeline in the State of Mexico, with an 8m-high flame reported by a PEMEX employee.  

PEMEX Faces Outstanding Payments, Further Investments

PEMEX and CFE are facing significant challenges with outstanding payments that surpass their debt payment budgets by a large margin. PEMEX's outstanding payments exceed its budget by 350%, while CFE's outstanding payments are 220% higher than its budget. This situation necessitates the exploration of new funding sources for both companies. 

PEMEX Sees the Sixth Months of Increased Fuel Oil Production

In April, PEMEX experienced its sixth consecutive month of increased fuel oil production. The company produced 322,500 barrels per day (Mb/d) of fuel oil, showing a monthly increase of 4.9%. On an annual basis, fuel oil production grew by 42.7%. This was the highest volume of fuel oil production since 2019.

Zama Field Reports Delay in Production

President López Obrador has announced a delay in production at the Zama field, a significant oil reservoir in the Gulf of Mexico. Originally scheduled to begin in 2024, production will now be postponed until 2025 when the next administration takes office.  

PEMEX’s Domestic Sale Decreases 

Recent statistics from the state-owned company as of the end of April show a significant 45.5% drop in sales compared to the same month of the previous year, when it sold MX$99.2 billion (US$5.6 billion). Month-on-month, PEMEX stopped receiving MX$2.6 billion (US$152.8 million) from the sale of gasoline within the country, representing a decrease of 6.2%. Year-on-year, this decline was 26.4% or MX$14.4 billion (US$8.2 billion).