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Insight

Structured for Progress

Tue, 01/22/2013 - 10:38

September 2011 marked a new starting point for Pemex Exploration & Production, with the reorganization of its internal structure to better approach the challenges that Mexican oil projects posed. Two new entities dedicated to exploration and field development were created to work alongside the production division. This transformation also meant partially shifting from an asset-based regional structure to managing projects based on their stage of development: exploration, development, and production. With the exploration division on track after the investment injection in recent years, and the production division planning to move its target from production stabilization to production growth, the field development will play a central role in transforming the discoveries of the exploration division into producing assets for the production division. “The role of the development division has become completely crucial: it has the key objective of reducing the

time between discovery and first production,” Morales Gil states. “If we do not achieve that, then Pemex E&P will have failed, and it will be evident two years from now.” Under the diversification strategy implemented since 2006, Pemex E&P will continue focusing its efforts on finding additional hydrocarbon resources to boost total production and reserves figures, with the clear objectives of maintaining a healthy reserve replacement rate and stable production that could start to increase marginally in 2013. “The key is to make the necessary investment to maintain a reserve replacement rate above 100%; this should be our first priority,” says Carlos Rafael Murrieta Cummings, Pemex’s Chief Operations Officer. “The fact that today we have 3P reserves that represent 32.9 years of potential production gives a lot of certainty to Pemex’s operations. From that point on, having 10.2 certified years of production fits our strategy and complies with international best practices.”