Mexico State Oil Co. Optimistic on Two Largest Fields

view article

Published at: www.rigzone.com

Michael LynchConsultantMichael E. Lynch

Petroleos Mexicanos will struggle with oil rate even with new water removal facilities

June 12, 2009

The Rigzone Newsletter on June 12 quoted Peter Millard of Dow Jones Newswires who reported that Mexico’s state oil company has an improved outlook on production from Cantarell and Ku Maloob Zaap oil fields. Together the two fields produce over half of Mexico’s 2.7 million bbl/day output. Ku Maloob Zaap has now overtaken Cantarell as Mexico’s largest producing field. Cantarell has declined to one third of its peak level. Petroleos Mexicanos (Pemex) is now beginning to correct past negligence at Cantarell. The company is reopening wells that produce high volumes of water. This year, Pemex opened an oil/water separation plant at Dos Bocas, a seaport near Cantarell where crude oil is exported. While average water production at Cantarell is 7%, some wells produce at a 40% cut. It is the water production that caused the decline of Cantarell. Reopening of the wells has not yet improved production. April production fell to 713,036 bbl/day from754,063 in March. The problem is still there.