Saturday, June 22, 2019

Pemex Says "No" To Deepwater -- Reuters -- June 22, 2019

Headline story but really nothing new here. 

Link here.
Petroleos Mexicanos will focus on shallow water projects and onshore plays, and avoid investing in its deepwater riches for now, as the ailing Mexican state-run oil company seeks to turn around a 14-year slide in crude production.
While the company has drilled wells and made discoveries in Mexican territorial waters in the deepwater Gulf, and has a joint venture partnership in one such project with Australia’s BHP Billiton, it has yet to produce any oil or gas there.
Pemex’s current crude production averages just under 1.7 million barrels per day (bpd), down nearly a half from peak output of about 3.4 million bpd in 2004.
Just another story in a long line of stories that deepwater is currently out-of-fashion -- too much CAPEX; too long to bring to production at a time of great uncertainty. 

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