Nov. 28–Mexico’s state oil company said Tuesday that it is tripling the reserve estimates for its biggest onshore oil and gas discovery in 25 years.
Pemex Chief Executive Carlos Trevino said exploration results at its Ixachi exploratory wells indicate the light oil and natural gas discovery near the eastern state of Veracruz holds more than 1 billion barrels of proven, probable and possible reserves. That’s up from the prior estimate of more than 350 million barrels announced a year ago.
Pemex said the discovery is one of the 10 largest worldwide made this decade.
The news is potentially a boost to Mexico, which has suffered declining oil production in recent years and leaned more on the United States to import gasoline and natural gas for electricity generation.
This is especially the case because the development time is not expected to be extensive. Pemex plans to bring more wells into production within a relatively short time frame, especially compared to frontier exploration projects in the deep-water Gulf of Mexico.
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