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Pemex announces largest Mexico oil discovery in 15 years

Mexico City, Mexico — Mexico’s president Enrique Peña Nieto has announced a new oil discovery in Veracruz. The finding, he says, is one of the largest and most important made by Petróleos Mexicanos in the last 15 years.

“This finding is the most important one made by Petróleos Mexicanos in land fields in the last 15 years,” noted Mexican President Enrique Peña Nieto.

The field, called Ixachi, has an original volume of more than 1.5 million barrels of oil equivalent, which could represent total reserves of around 350 million barrels of oil equivalent.

“This volume is similar to the discoveries reported a couple of months ago by private companies with the Zama-1 well,” said Pemex in a statement.

This discovery will support the short and medium term to meet the demand for wet gas and light oil in the country. The deposit contains gas with a high content of condensates useful in the refining process and the petrochemical industry.

President Peña Nieto explained that it is a deposit that has great economic value since it is a land field that has the strategic advantage of being close to existing infrastructure, both in production wells and in the national pipeline system, so that can go into production more quickly.

Based on the work done, it is considered that this discovery can be extended even more, and even double its size, said Pemex.

Wood Mackenzie analyst Pablo Medina pointed out that it is “a land discovery worthy of applause, but let us be cautious in talking about commercial reserves yet, time to time.”

“Good news for Pemex given that it is a discovery, but it is sensible to wait for delimiting wells to understand the potential of the field,” he added.

The specialist of the National Institute of Public Administration, Arturo Carranza, stressed that the finding “refutes the argument that the oil on land was finished,” and that “will contribute to lift the economic activity of Veracruz.”

Ixachi-1 is located in the Veracruz Basin, 40 kilometers northwest of Cosamaloapan and 26 km northeast of Tierra Blanca.

On September 21, 2016, the National Hydrocarbons Commission gave Pemex permission to drill the exploratory well.

At that time, the commissioner Héctor Moreira considered the well was of great strategic value and could have a great impact, since if successful, the possible continuity of the well-known Gold Belt would be confirmed.