Mexico’s oil regulator on Tuesday approved a promising new deep water block to state oil company Pemex [PEMX.UL], but conditioned the allotment on the firm developing the area with a partner that would eventually operate it.
The new Chachiquin area, adjacent to Pemex’s Nobilis-Maximino block, could produce 80,000 barrels per day of oil once it reaches peak output, according to the regulator’s estimates.
Development of the area is not expected to begin until 2024 at the earliest.
“It’s incredibly important for the country to move forward with deep water projects,” said Hector Moriera, a commissioner with the regulator, known as the CNH, adding that 53 percent of Mexico’s prospective oil resources are in deep water deposits.
“That’s where much our country’s oil future lies,” he said.