Mexico oil recovery will take time

MEXICO CITY, April 11, 2018 – Mexico will not be able to completely reverse its declining hydrocarbons production for some time, the country’s energy secretary said on Tuesday.

Speaking at an event sponsored by the Mexican Association of Hydrocarbons Companies, Secretary of Energy Pedro Joaquín Coldwell told participants that the original national production target of 3 million bopd would not be met this year.

“Stopping the decline will take more time because the oil industry is long term, and requires prior exploration periods,” Secretary Coldwell said. “The benefits of the Mexican energy model will be noticeable in the medium and long term, given the maturation times of projects in the hydrocarbons sector.”

NOC Pemex’s output stands at around 2 million bopd and to reach the 3 million bopd objective, a total investment of USD 640 billion is required.

Secretary Coldwell also said that the first commercial production in shallow waters from private companies would likely come in 2019, while deepwater production was expected in seven to eight years.

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