Latest news with #AngelCidMunguia
Yahoo
10-05-2025
- Business
- Yahoo
Pemex aims to increase oil production by reactivating closed wells
Pemex, Mexico's state energy company, is taking steps to reopen old wells to increase oil production, which has been in decline. This move comes as the company faces challenges in meeting the government's production target of 1.8 million barrels per day (mbbl/d), with an expected fall to 1.58mbbl/d this year, according to a report by Reuters, citing sources. The company, which currently produces around 1.6mbbl/d, has seen a steady decrease in output due to the depletion of its older fields in the Gulf of Mexico (GOM) and the underperformance of newer fields. Pemex's exploration and production arm head Angel Cid Munguia mentioned in an internal document the progression of "reactivation of closed wells" without specifying numbers, the report said. The decision on which wells to reopen will be based on risk assessments and potential for rapid production increases, according to four sources familiar with the plans. Mexico has more than 31,000 wells, with approximately one-third closed. Of these, around 4,800 are considered operational for hydrocarbon production. The reactivation strategy involves evaluating geological data, funding availability, well mechanics and the recovery factor of each well. While the documents did not detail the technology to be used, other global operators in mature fields have employed advanced equipment to maintain production. The focus is on wells that can produce crude oil, natural gas and condensate. Budget limitations have slowed the reactivation plans at Pemex, which is heavily indebted. Some wells were closed due to water intrusion or low pressure, requiring more specialised equipment for production. Pemex has also been exploring secondary recovery methods for wells in the GOM, including Ku, Maloob, Zaap, Akal and Ayastil. These projects have been hindered by financial constraints, despite their potential to significantly increase production. In addition to the reactivation efforts, Cid Munguia's document from 6 May indicates the appointment of two individuals to oversee strategic exploration projects. Amidst these developments, Pemex is also seeking new markets for its crude oil in Asia and Europe in response to US tariffs, which include a 25% levy on Mexican crude. "Pemex aims to increase oil production by reactivating closed wells" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
08-05-2025
- Business
- Reuters
Mexico's Pemex plans to reopen wells to boost declining production, documents and sources show
MEXICO CITY, May 8 (Reuters) - Mexican state energy company Pemex plans to reopen old wells in a bid to squeeze more barrels out of them to boost declining production, according to two documents and four sources, as it struggles to reach an ambitious government target. Pemex said in a recent filing to the United States Securities and Exchange Commission that it expects production to fall to 1.58 million barrels per day (bpd) this year rather than the 1.8 million bpd officials have consistently touted. Angel Cid Munguia, the new head of the company's exploration and production arm, wrote in an internal document, dated May 6, that it was advancing with the "reactivation of closed wells" though did not elaborate on the number. The specifics would depend on both the risk profiles of the thousands of wells across the country both onshore and offshore, and which ones could ramp up production fastest, four sources familiar with the plans told Reuters. Pemex did not immediately respond to a request for comment. Mexico has more than 31,000 wells both onshore and offshore, and about a third of them are closed, data shared with Reuters showed. More than 4,800 wells are considered to be "operational" for hydrocarbon production. The reactivation depends on geological information, funding, well mechanics, and the recovery factor of each well, said one of the sources, who has studied closed wells in detail. The documents lacked detail on what exact technology would be used to reactivate old wells but companies operating in other mature fields around the globe have used specialized expensive equipment to keep bringing hydrocarbon products to the surface even as production slows.
