Pemex makes large Mexico find

MEXICO CITY, November 6, 2017 – Mexican NOC Pemex has made its largest onshore discovery in the past 15 years, international media reported over the weekend.

The state-owned company drilled the Ixachi-1 well in the state of Veracruz, encountering a reservoir containing an estimated 1.5 billion boe in original oil in place and about 350 million boe in total reserves. According to Pemex, the discovery’s initial estimated size could double.

“The reservoir possesses great economic value due to its closeness to existing infrastructure from production wells to the national pipeline system, and can therefore begin production in a shorter period of time,” the NOC said in a statement.

José Antonio González Anaya, the company’s CEO, told Reuters that production from the field could begin as early as end-2018.

The find bodes well for both Pemex, which has seen production drops amid its financial struggles in the past several years, and for the federal government, as around 20% of its budget is dependent on oil revenues.

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