The Mexican side of the Gulf of Mexico has generated high expectations in terms of oil exploration and production. However, offshore projects represent major environmental, operational and economic challenges, but the industry is progressing satisfactorily on these issues.
The National Hydrocarbons Commission (CNH) had planned an auction of unconventional areas for this year, but the entity decided to postpone it for the next government to analyze it. However, it seems like Andres Manuel Lopez Obrador (AMLO) has already made a decision on this issue.
One of the main goals of Energy Reform was to promote oil exploration in the Gulf of Mexico and the government has advanced satisfactorily in this process, positioning the country as one of the most attractive ones in this area.
The National Hydrocarbons Commission (CNH) has signed several contracts in recent years with private companies to develop exploration and production projects in the country, generating high investment expectations for the coming years. The commission compared the country’s onshore fields those of other countries in the region, highlighting the potential of the Mexican blocks.
Pemex received most of the Mexican fields in the Zero round, with the commitment to conduct an aggressive exploration and drilling campaign. However, the NOC has not been able to meet expectations and its compliance percentage is very low so far, generating concerns among Mexican authorities.
Energy Reform opened the possibility of implementing unconventional techniques in different regions of the country, but this is creating some concerns. The National Commission of Human Rights (CNDH) reported on the current situation of these techniques in Mexico.
Pemex reported its Reserves Replacement Ratio (RRR) for 2017 in a report sent to the U.S securities and Exchange Commission (SEC). The NOC reported a recovery in RRR compared to previous year, but it is still below the industry standard of aiming to replace 100% of annual production with new discoveries.
Mexico has great potential in the exploration and production of hydrocarbons, but there are many areas that have not been sufficiently explored, especially in the Gulf of Mexico. The National Polytechnic Institute (IPN) announced work on this subject.