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crudeon Oct 08, 2020 7:05pm
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El Stupido
El Stupido
Pemex fails in exploration
Karla Omaa
Mexico City (October 08, 2020) .-
05:00 hrs
Petrleos Mexicanos (Pemex) has not been efficient in exploration, as the commercial success rate in 162 shallow water exploratory wells drilled from 2000 to date has been less than 20 percent, according to data from the consulting firm Welligence Energy Analytics.
This year, the results have not improved. During the first six months, Pemex completed 7 exploratory wells, but only 2 were crude producers, according to information from the National Hydrocarbons Commission (CNH).
In the case of companies such as Eni, Repsol, Newpek and Shell, which have contracts derived from the energy reform, of the 8 wells drilled, 5 were successful: 3 for oil and 2 more for dry gas.
"Pemex, since it discovered Xikn five years ago, has not made a single discovery in shallow waters above 100 million barrels in 40 attempts," said Pablo Medina, vice president of the consulting firm.
He explained that the exploratory success standard in the industry hovers between 25 and 40 percent on average.
And the problem is even greater in deep water, he said.
According to a study carried out by consulting firm McKinsey in 2018, the percentage of exploration success in the United States in deep waters has been up to 46 percent.
Medina noted that since Pemex began working in deep waters it has drilled 50 exploratory wells, of which it has only made four commercial discoveries.
"We are talking about a commercial success rate of less than 10 percent; deep water is a matter of technical, commercial and financial expertise, deep water developments are more expensive," he said.
Exploration is one of the highest risk activities in the industry due to the high level of uncertainty: it requires heavy investments in studies and risk mitigation plans, the success of which depends on the financial, technological and operational capacity of each company.
One of Pemex's priority objectives is to increase its production platform, but so far it has not been successful.
The oil production of the oil company decreased 2.4 percent between December 1, 2018 and August 31, 2020, according to the most recent and available official figures.