Mexico´s New Oil Discovery Bigger than Cantarell

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Researched by Industrial Info Resources (Sugar Land, Texas). According to Vicente Fox, Mexico´s President, the state-owned oil company Pemex has discovered a new deep water oil field located about 62 miles from the port of Coatzacoalcos on the coast of Veracruz. This is great news considering the recent sharp declines in production of the Cantarell oil field. Experts estimate that this new oilfield, which may contain 10 billion barrels of crude, could actually be larger than Mexico´s largest oil field known as Cantarell.

Pemex success, with proved reserves of 34 billion barrels of oil, accounts for approximately 30% of the Mexican Government’s revenue. Pemex expects to produce an average of 3.42 million barrels per day of crude oil in 2006, a target slightly above average 2005 output of 3.33 million barrels per day.

This state-owned company started drilling the newly discovered oil field on December 25, 2005 and drilled well under 950 meters of water to a depth of 3.43 meters. Moreover, according to Pemex’s drilling estimates, they are expecting to find more potential crude oil reserves as well as the chance to reach 4,000 meters of depth by March 26, 2006.

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