Mexico’s national oil company Petróleos Mexicanos (Pemex) unveiled its 2016-2021 business plan that will see the company take advantage of the Energy Reform with an aggressive farmout program, expecting to increase production by 15%.
Along with the rest of the industry, Pemex has also made several cuts and adjustments, including halting production in wells that cost more than US$25/bbl; and reassess investments by $3.1 billion (65 billion pesos). Of the $3.1 billion, Pemex cut deepwater investment by $622 million, where the Trion deepwater farmout set for December comes into play; and the farmout for shallow water area Ayin-Batsil set for April 2017.
Trion has an estimated 500 MMbbl of 3P reserves; and both offshore and onshore fields that Pemex will auction in Rounds 2.1 and 2.2, hold and estimated 444 MMbbl.
Pemex’s “aggressive” farmout plan will include 13 farmouts, both offshore and onshore next year. In 2018, Pemex is planning to farmout six shallow water areas in the North region, and 64 onshore areas.
The business plan encourages the creation of joint ventures along Pemex’s entire value chain as a mechanism to increase investment and efficiency.
Due to changes in its legal framework, Pemex can carry out operations in a similar way to the rest of the international oil companies, which will enable it to reverse the last years’ downward trend in its results and share technical, technological and financial risks along the entire value chain.
Should all go to plan, Pemex expects to be financially stable by 2019/2020.