Mexico Closes December With Steady Oil Production

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Mexico's oil production stood at 1.616 million barrels per day (BBL/d) in December, which was slightly higher than in November and on par with previous months, according to the National Commission of Hydrocarbons (CNH). Petroleos Mexicanos (Pemex) (Mexico City), the state-owned oil company, represented 94% of the total output, while private companies produced 103,000 BBL/d on average during the month.

However, Mexico closed 2022 with an output average of 1.622 million BBL/d, the lowest volume going back to at least 2016, according to the data displayed by the CNH. Pemex produced 1.523 million BBL/d, about 5% lower than in 2021 and 2020, and the lowest amount going back to 2016.

Meanwhile, the private sector has seen its oil production climb from 22,000 BBL/d in 2018 to 99,000 BBL/d last year.

Despite Pemex's lower oil production volumes, the company has scored progressively higher condensate output. In December, Pemex produced 262,500 BBL/d of condensate, the highest on record since 2016. For all of 2022, it produced an average of 220,000 BBL/d.

Combining oil and condensate production in 2022 puts Pemex at a production of 1.744 million BBL/d.

On Sunday, Pemex put out its own numbers for December, reporting that it reached an output of 1.817 million BBL/d, including its own production, that of its partners, and condensates. Additionally, it said that the January volumes were at 1.878 million BBL/d.

The discrepancy in the numbers between Pemex and CNH could be related to the way in which the data is displayed and collected.

Pemex attributed the higher output in January and December to a change in its energy strategy since 2018, when the company focused on shallow waters and onshore fields.

The company also said that the fast development and production of new oil fields have helped to arrest Pemex's production declines. In January, crude production from new oil fields averaged 510,000 BBL/d.

The development of new oil fields has helped to overcome the production declines from mature fields such as Cantarell and the Ku-Maloop-Zaap oil complex, the largest oil-producing project in Mexico. Industrial Info is tracking nine active Ku-Maloob-Zaap-related projects worth US$317. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Database can click here for the project reports.

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