Pemex expects first oil from deepwater fields in 6-8 years

Friday, February 2, 2018

Pemex expects to see production begin at the deepwater fields it was awarded in the January 31 auction in six to eight years.

José Antonio Escalera (pictured), exploration director at the state oil company's E&P division PEP, said that process entails the evaluation period to determine the size of the blocks and their subsequent development.

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Pemex won four of the 10 blocks for which it bid; block 5 in the Perdido area and block 18, as an individual bidder; in addition to block 2 in the same area in consortium with Shell, and block 22 in the Salina basin in consortium with Chevron and Inpex.

The NOC has yet to gain experience in deepwater, however, having only worked at shallow depths, although the company's two partnerships, with BHP Billiton and Chevron and Inpex to develop the Trión block and block 3 in the Perdido area, respectively, are expected to give it valuable experience.

Also read: Can Pemex deliver in deepwater?

"That's when the big investment will come, such as in the Trión block, which Pemex farmed out, and in which we will invest billions of US dollars," Escalera said in an interview sent to BNamericas.

He highlighted the fact that it is Mexico's energy reform that has enabled Pemex to operate in more blocks.

"The investment capacity of a state-owned oil firm is limited. The exploration business is one of risks, of high risk, but we receive adequate compensation in time. It's therefore a question of probability, the more areas we work in, the more areas we will invest in, and that gives us more opportunities to find hydrocarbons. And that's one of the advantages that the reform brings us," he said.

"There's a lot of oil in Mexico's soil. There's oil for a long time and this way of operating, in which more companies participate, accelerates our [geological] knowledge and without a doubt the deepwater projects in our production platform will strengthen us in the medium and long term."