Pemex Announces Another Large Oil Discovery

In the past few months Petroleos Mexicanos (Pemex) has had some success with its oil discoveries, and the latest is in the form of a deposit in the southern state of Tabasco.

The onshore Navegante 1 well holds a potential 500 million barrels of light crude oil at a depth of around 6 kilometres. Production is planned to begin on the new discovery in the next month.

President Felipe Calderon stated that “this is one of the biggest discoveries in the last 10 years, particularly onshore.”

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Mexico is the world’s seventh largest oil producer yet its production has declined over the past few years, since reaching its peak production output of 3.4 million barrels a day in 2004. To try and reverse this declining trend Pemex has invested $10 billion since 2009 in exploration activities.

The recent discovery is the third in the past few months, following two offshore fields in the Gulf of Mexico, the 200 million barrel Trion 1 well near to the US border and discovered in August, and the 125 million barrel Supremus 1 well near to the coast of Tamaulipas, discovered in October.

By. Joao Peixe of Oilprice.com