Mexico’s Pemex Eyes Major Upstream Capex Boost

SEATTLE (Oil Monster): Pemex- the Mexican state oil company has announced an upstream capex budget of $13.4 billion for the current year. This is significantly higher by nearly 48% when compared with the budget of $9.05 billion during the previous year. The capex plans were outlined in the latest report filed to the U.S. Securities and Exchange Commission.

The allocation by Pemex for the offshore Ku-Maloob-Zaap complex has nearly doubled from the budgedted amount last year to around $2.28 billion. It must be noted that the most recent data published by the upstream regulator Comision Nacional de Hidrocarburos (CNH) had ranked Maloob and Zaap as the country’s topmost producing oilfields.

The second highest budgeted amount allocation was for the onshore Ixachi natural gas and condensate field, which helped the country to offset declining output from other mature fields. The capex budget has increased multi-fold from $287 million last year to $1.06 billion in 2023. The company has budgeted $643 million for Quesqui development in 2023, compared with $722 million during the previous year.

Pemex targets to produce 4.67 Bcf/d of gas in 2023, mainly driven by Ixachi and Quesqui. The first quarter output had fall short slightly to average at 4.1 Bcf/d, data said.

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