Pemex discovers largest oil field in 15 yearsBy Elliot Bullman
Mexico’s national oil company Pemex has made its biggest onshore oil discovery in 15 years with a find in the eastern state of Veracruz, President Enrique Pena Nieto said on Friday.
The volume of the deposit discovered by Pemex, is estimated at 1.5billion barrels of crude. The Ixachi-1 field of oil and associated gas is located in Cosamaluapan, south of the port of Veracruz.
Peña Nieto confirmed that the discovery is the most important deposit in land fields in the last 15 years.
The light oil field should begin producing by the end of 2018 or the beginning of 2019 and will lower costs due to the location of the discovery, which has infrastructure near the facilities of the company.
While crude export revenue once contributed as much as 40 percent of government revenue, that figure has dropped to under 20 percent as oil prices have slumped in recent years.
The discovery is similar in size to the field associated with the Zama well announced in July by Britain’s Premier Oil, along with partners, U.S.-based Talos Energy and Mexico’s Sierra Oil and Gas, the company said.
Mexico hit peak oil output in 2014 with about 3.4 million barrels per day (bpd). Pemex, still responsible for nearly all of Mexico’s current crude production, expects to end 2018 with average output of 1.9 million bpd.
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