Mexico City – Mexico’s state-owned oil producer, Pemex, on Tuesday October 9, said it had discovered about 180 million barrels of oil offshore. The reserves could boost Mexico’s oil output, which has been in decline since 2004. They were found in the Manik well, roughly 52 miles offshore in the Gulf of Mexico, and the Mulach well, about 11 miles offshore.
Pemex CEO Carlos Treviño said in a statement that the reserves were proven, probable, and possible, or 3P, meaning there’s a high degree of certainty that the oil can be extracted. The company will need $7 billion to $10 billion in capital, including investments in oil rigs and pipelines, to develop the newly announced discovery and others found nearby in recent years, according to Reuters.
The offshore fields combined could increase Mexico’s production by up to 210 million barrels of oil and 350 million cubic feet of gas a day, Pemex said.
Mexico earlier this year became the first Latin American country to join the International Energy Agency, an industry watchdog.
“The country’s energy sector is in a period of profound change, catalyzed by comprehensive energy reforms the government has been enacting since 2013,” the IEA said. These reforms include ending Pemex’s monopoly and attracting new players into the oil industry.
Pemex’s discovery was announced just as the IEA urged larger oil producers to open the taps on output. Fatih Birol, the agency’s head, said at a conference in London on Tuesday that US sanctions on Iran and shrinking production from Venezuela could tighten the market even further.
The cost of Brent crude oil, the international benchmark, has surged 27% this year as members of the OPEC cartel and their allies cut production to boost prices following the 2014 crash. Brent surged to a four-year high of nearly $86 a barrel last week.
more recommended stories
US military to set up tents for migrants on southern border
Washington (AFP) – The American military.
Mexico to auction expensive sports cars seized from criminals
Mexico City (AFP) – Mexico announced.
Boys and girls sing the Mexican National Anthem in Maya language (VIDEO)
Lyrics that give us identity to.
Andrea kicks off the 2019 Atlantic hurricane season early
On Monday May 20th, a low.
“Chief Saidén is not going anywhere” (Mauricio Vila Dosal)
In relation to the rumors and.
Museo de la Luz (Museum of Light) breaks ground in Mérida’s La Plancha
On Tuesday May 21st, the National.
Cuba still welcomes American tourists despite Trump restrictions
VARADERO, Cuba (AP) — The battle.
Guatemalan teen dies at Border Patrol station, 5th minor to die in US custody in 6 months
PHOENIX – A 16-year-old boy diagnosed.
Cruise the ocean with gourmet food, craft cocktails and the best of the digital world
PORT OF SAN FRANCISCO — We’re.
Come to the Yucatan…
Standing barefoot on a wooden jetty.