Pemex bets big on Quesqui field with US$3bn investment

Mexican state-owned hydrocarbons giant Pemex plans to invest US$3.14bn mostly in 2023 and 2024 to further develop its Quesqui shallow water gas field off the coast of Tabasco state.

The plan was approved by regulator CNH with three votes in favor and one against. The latter was by commissioner Alma América Porres Luna, who argued the proposed recovery plan was not appropriate for a gas and condensate field of Quesqui's specifications and expressed concerns regarding gas flaring at the site.

According to Pemex, the plan will allow it to significantly ramp up production in the area starting next year, jumping to 1Bf3/d (billion cubic feet a day) from the current 400Mf3/d, and to 250,000b/d of condensate from 136,000b/d.

This would be achieved by spudding 18 production wells with the aim of extracting 390Mb of condensate and 2.2Tf3 of natural gas in total. Pemex also intends to end gas flaring at the field, which is currently at a rate of 5Mf3/d, CNH said.

Quesqui is Mexico's most productive gas field.

During the same session on Thursday, Jaguar Exploración y Producción was given the green light to invest between US$33mn and US$71mn to explore its VC-02 natural gas contract in Veracruz state.

The firm said its spudding budget could reach US$67.4mn if four potential planned prospects are explored, although only one of them, Uxu, is compulsory. Taken together, the company expects to find up to 298Mboe at the site.

Meanwhile, Russian oil and gas giant Lukoil said it would spud no wells next year to further explore its Yoti West discovery off the coast of Tabasco.

According to CNH, the company will conduct studies and modelling and will file a request to extend its exploratory period in the area. Yoti West was among the most significant discoveries made last year, and is estimated to contain 250Mb of oil, according to the firm.