& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News




Mexico 500 mb Quesqui field discovery may not be cure-all for ailing Pemex


López Obrador celebrates oil discovery with Pemex workers in Tabasco.

By Amy Stillman / Bloomberg

Petroleumworld 12 10 2019

Even as Mexico's president and Petroleos Mexicanos's CEO touted the country's most important find in three decades, it appears to be far from a panacea for the beleaguered state driller.

Pemex called the Quesqui deposit -- which is believed to contain 500 million barrels of proven, probable and possible, or 3P reserves -- the most important discovery since 1987. Another onshore field Ixachi discovered during the previous administration was touted as the largest find in 25 years, with some 1.3 billion barrels of 3P reserves.

The discovery -- of very light oil, or condensate, and natural gas -- is a welcome development for the beleaguered state driller that has experienced almost 15 years of output declines and has about $100 billion in debt, the highest of any oil company. But one analyst cautioned against over-optimism at this point.

“Productivity-wise, it seems to be smaller than Ixachi,” said Pablo Medina, vice president of Welligence Energy Analytics, an energy consultant. “There hasn't been a development plan submitted for it, so it's too early to talk about reserves based off one single well.”

The field is expected to reach 69,000 barrels a day of oil production and 300 million cubic feet of gas production next year, Pemex said in a statement on Friday. Pemex is drilling another delineation well and the volume could increase by as much as 200 million barrels, Pemex's Chief Executive Officer Octavio Romero Oropeza said in a press conference with President Andres Manuel Lopez Obrador on Monday.

Turnaround Struggle

Pemex has been struggling to turn around production declines and revamp its refineries to make the country more self-sufficient, a major goal of the administration. The company said that oil output will reach 1.778 million barrels a day by the end of December, up from 1.712 million at the start of the month -- but still down by half since 2004. In June, Fitch Ratings Inc. cut Pemex's bond rating to junk, and the company could face a fresh downgrade by another credit agency.

The find could help Pemex 's credit rating by boosting reserves, according to Romero. Mexico will incorporate an additional 500 million barrels of proven reserves next year, bringing the total to 7.5 billion barrels, he said.

“When a field has 500 million barrels of reserves, it's considered a giant field,” Romero said during the conference. “Of course, for the ratings agencies this is good news regarding Pemex.”

Lopez Obrador lauded the discovery in his home state and criticized the previous administration's strategy to invest in the deep-water Gulf of Mexico as expensive. “Today, where are we investing? Where there's oil,” he said during the conference.

Lopez Obrador has scaled back the 2014 energy reforms designed to lure in private investment, promising to “rescue” Pemex by investing in onshore and shallow water fields instead of more technically complicated deep-water areas.

“It is great news for Pemex to continue having discoveries,” said Medina. “However, blowing them out of proportion is something we've seen happen in every government administration.”

Story by Amy Stillman from Bloomberg 12 09 2019


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.


Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions as the source.

Other stories you have to get authorization by its authors. Internet web links to are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1




Editor & Publisher: Elio Ohep/
Contact Email:

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.