Pemex Shallow-Water Oil Finds to Produce 40,000 Barrels a Day

  • Exploration has added 1 billion barrels to reserves this year
  • Company announces $23 billion in refining investments

A difficult year for Petroleos Mexicanos is coming to a close with some positive news.

Pemex, as the state-owned oil company is known, announced two shallow-water discoveries in the Gulf of Mexico that may add 40,000 barrels a day to the company’s output, Chief Executive Officer Emilio Lozoya said at the Miguel Hidalgo refinery in Tula. Pemex also said it will invest $23 billion in the country’s six refineries to enhance clean gasoline production and improve residue utilization.

“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. The discoveries will allow Mexico to limit the loss of oil reserves and boost the company’s falling output, he said.

This was Pemex’s second substantial find in the shallow waters of the Gulf of Mexico this year. In June, it announced four discoveries with the potential for daily production of at least 200,000 barrels of oil and 170 million cubic feet of gas. Pemex’s exploration added 1 billion barrels of oil to the company’s total reserves, Lozoya said, which will allow production to stabilize. The company’s crude output is on pace to decline for an 11th consecutive year in 2015.

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