Background on Pemex and its Current Situation
Petróleos Mexicanos (Pemex) is the state-owned petroleum company of Mexico, responsible for the exploration, production, refining, and marketing of oil and petroleum products in the country. As Mexico’s national champion, Pemex plays a crucial role in the nation’s energy sector and economy. However, it has faced significant challenges in recent years due to declining production levels and aging infrastructure.
Pemex’s Ambitious Production Targets
In a recent statement to the U.S. Securities and Exchange Commission (SEC), Pemex acknowledged that it expects daily oil production to fall to 1.58 million barrels per day (bpd) by 2025, down from the 1.8 million bpd target previously announced by the government.
New Leadership and Plans for Well Reactivation
Ángel Cid Munguía, the newly appointed head of exploration and production at Pemex, has reportedly initiated efforts to reactivate closed wells in an attempt to extract more barrels from them. In an internal document dated May 6, Cid Munguía mentioned the “reactivación de pozos cerrados” (reactivation of closed wells), though no further details were provided.
According to four sources familiar with the plans, the success of these efforts will depend on evaluating the risk profiles of thousands of wells across Mexico’s land and offshore areas. The goal is to identify which wells can most quickly increase production.
Pemex’s Response and Future Implications
Reuters reached out to Pemex for comment but did not receive an immediate response.
Key Questions and Answers
- Who is Ángel Cid Munguía? Ángel Cid Munguía is the newly appointed head of exploration and production at Petróleos Mexicanos (Pemex), the state-owned petroleum company of Mexico.
- What is Pemex’s current production target? Pemex expects daily oil production to fall to 1.58 million barrels per day (bpd) by 2025, according to their recent statement to the U.S. Securities and Exchange Commission (SEC).
- What are Pemex’s plans to boost production? Under Cid Munguía’s leadership, Pemex intends to reactivate closed wells across Mexico’s land and offshore areas to extract more barrels and increase production.
- Why is this important for Mexico? As the national champion in the energy sector, Pemex’s performance significantly impacts Mexico’s economy and energy security. Boosting production will help maintain the country’s oil exports, which are vital for its economy.
- What challenges does Pemex face? Pemex has been dealing with declining production levels and aging infrastructure, which have hampered its ability to meet ambitious targets set by the Mexican government.
