Mexico: discovery of a major oil and gas field

Mexican President Enrique Peña Nieto announced Friday the discovery of an “important” oil and gas field in the state of Veracruz, in the east of the country.

This deposit would have reserves estimated at 1.5 billion barrels of crude oil and would be the discovery “the most important of the last fifteen years” in the terrestrial field for the public company Pemex, underlined Mr. Peña Nieto during a public meeting. The extraction should be done “in a relatively short time and at a low cost” because the deposit is close to existing Pemex infrastructure, according to the Mexican president.

This discovery comes as the oil giant’s output dropped in the third quarter to 1.8 million barrels, a 12% drop from the same period in 2016. The company Pemex which generates about 16% of the revenues of the Mexican state, recorded a net loss of $ 5.3 billion in the third quarter, mainly because of the impact of natural disasters on its production in September.