Deepwater exploration appears to be the focus of major investments in Mexico in Q3. As state-controlled oil company Pemex focuses on easy-extraction shallow water projects, private players set their sights on deepwater alternatives. International companies are seizing the opportunity to explore Mexico’s reserves, with two exploration projects from Shell and one from China National Offshore Oil Corporation (CNOOC). According to Mexico’s National Hydrocarbons Commission (CNH), exploration of deep and ultra-deep waters accounted for 45% of investments and 80% of reserves in the last quarter.

Companies drilled 33 new wells, 30 of which were by Pemex, in Q3; with CNH approving 14 new wells. The deepwater exploration saw an investment of $117.2 million from Shell Xochicalco and $91.6 million from CNOOC. According to CNH, Ameyalli holds 1,318 million barrels of oil equivalent (BOE) and Xochicalco holds 562 BOE, totalling 80 percent of the authorized prospective resources for exploration for the quarter.

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Source: Oil Price