CNH has given the green light to PEMEX to develop the Tupilco Deep Field in Tabasco. Located in the municipality of Comalcalco, the Tupilco Deep Field covers an area of 13.7km2 and serves as a notable source of light oil, with a density of 40.18 degrees API, extracted from the Upper Jurassic Kimmeridgian formation. It has a track record of producing 55.21MMb and 69.69Bcf of natural gas.
PEMEX’s proposal outlines three drilling and well completion operations, along with the construction of 12 pipelines, two facilities, and 1,048 minor repairs. The total investment for these initiatives amounts to US$1.48 billion, with US$1.06 billion earmarked for capital expenditure and US$416.55 million for operational expenses.
The assignee anticipates recovering 116.86MMb of oil and 124.42Bcf of gas, leading to a final recovery factor of 37% for oil and 42% for gas over the assignment’s duration.
This approval adds to PEMEX’s efforts to optimize resource extraction and bolster energy production capabilities in the Tabasco region. While the NOC’s focus on mature fields has yielded results, it has also been scrutinized for not significantly overturning decline in production. Early depletion of fields has also been a point of concern for players, especially in a context where private participation and halting projects for other areas such as deep water blocks has been the norm over the past six years.
IEA expects Mexican oil production to decrease over the next five years due to a reduction in state investments and the limited activity of private companies, which rely heavily on the development of fields they have managed to secure in the country.