Pemex: Fall in Proven Crude Oil Reserves in 2005

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Researched by Industrial Info Resources (Sugar Land, Texas). The director of Mexico's state-owned oil company known as Pemex, Luis Ramirez Corzo, explained that the country´s total proven crude oil reserves fell by 1.07 billion barrels by the end of 2005 compared to 11.8 billion barrels registered in 2004. Moreover, the natural gas reserves fell 2.3% to 20 billion cubic feet as compared to 2004.

Mexico is the fifth largest oil producer in the world, the largest in Latin America above Venezuela and Brazil, and the third largest oil provider to the United States. What is more, Pemex's holds reserves of 34 billion barrels of oil which 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 the 2005 average output of 3.33 million barrels per day.

Mexico´s most important oil reserves are Cantarell, Ku Maloob Zaap, and a newly discovered field on the coast of Veracruz. Cantarell, the largest oil field in Mexico, and only second to Saudi Arabia's Ghawar field in the world, is located 80 kilometers offshore in the Bay of Capeche, Mexico and comprises of four major fields: Akal, Nohoch, Chac, Kutz adn Sihil. This giant oilfield is facing a production decline which may reduce the overall Mexican oil output. Ku Maloob Zaap is located in Campeche Bay about 100 kilometres northwest of Ciudad del Carmen, and the new deep water oil field is about 62 miles from the port of Coatzacoalcos on the coast of Veracruz, in which Pemex expects to find more potential crude oil reserves.

Of the total 1.07 billion barrels of crude reserves, 72% represents proven hydrocarbons reserves, natural gas represents 17%, and condensed and liquid oil products only represents an 11%. At the present time, 70% of those reserves are developed reserves where most of them are located in Pemex´s marine regions and southeastern region of Mexico.

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