Mexico announces biggest oil discovery in 30 years

Mexico’s state-run oil company Pemex announced on Friday the discovery of an oil field that could generate 500 million barrels of crude, making it the country’s biggest oil find in over 30 years.

Pemex first discovered the Quesqui field, a 3P reserve, in the Southeastern state of Tabasco in May, before beginning studies to evaluate its viability. The first well was drilled in June and it is now producing 4,500 barrels per day (bpd) of crude.

“With the analysis of information provided by this well and seismic data in the area, we can confirm today the existence of a giant deposit equivalent to 500 million barrels of crude oil in a 3P reserve,” said Pemex’s chief executive Octavio Romero Oropeza.

The 34 km2 field is planned to have 11 wells and a production of 69,000 bpd in 2020 and 110,000 barrels of oil and 410 million cubic feet of natural gas per day in 2021.

Mexican President Andres Manuel Lopez Obrador has made it a top priority to revive Pemex, which has seen production gradually decline for more than a decade while its debt has grown dramatically during this time.