Finally, some good news for the embattled state-run Mexican oil company, Pemex. The company announced two shallow-water discoveries in the Gulf of Mexico that could add 40,000 bpd to the company’s production, CEO Emilio Lozoya said while at the Miguel Hidalgo refinery in Tula. Lozoya also said the company plans to spend $23 billion on Mexico’s refineries to improve residue utilization and enhance clean gasoline production.
“We had an oil discovery cost of $2 per barrel and a commercial success superior to 40 percent, all during a complex year,” Lozoya said. These finds will allow the country to limit the loss of oil reserves and increase the state-run company’s declining production, he added.
Pemex CEO Emilio Lozoya (left) with Mexico President Enrique Pena Nieto
Tuesday’s announced discovery marks Pemex’s second significant find this year in the shallow waters of the Gulf of Mexico.
Four discoveries, with the potential for daily production of at least 200,000 barrels of oil and 170 million cubic feet of gas, were announced in June.
Lozoya said Pemex’s exploration added 1 billion barrels of oil to the company’s total reserves, and this will enable output to stabilize. Pemex’s oil production is on track to fall for an 11th straight year in 2015.
In September, Mexican President Enrique Pena Nieto said that the country plans to invest the least in 9 years on O&G exploration, depending instead on foreign companies to buoy its languishing energy sector. He said the government would reduce its investment in Pemex by 20% in 2016.
At the same time, Finance Minister Luis Videgaray said the state-run company has no intentions on producing less to boost oil prices.