Page 6 - LatAmOil Week 03 2023

LatAmOil MEXICO LatAmOil

The Ixachi field was discovered within the Perdiz area in 2017 (Photo: TGS)

SENER documents show Pemex flared

nearly $350mn of gas and condensate

MEXICO’S Secretariat of Energy (SENER) Reuters indicated that underinvestment had
has determined that the national oil company contributed to Pemex’s underperformance. The
(NOC) Pemex illegally flared nearly $350mn NOC only spent $649.6mn on the field in the
worth of hydrocarbons while developing the three years ending in August 2022, or 22.4% of
Ixachi and Quesqui natural gas fields in the the total $2.9bn pledged, it explained.
three-year period ending in August 2022, In response to a query from Reuters, the head
according to a Reuters report. of regulatory compliance at Pemex’s exploration
The news agency said on January 18 that it and production division confirmed that the doc-
had viewed ministry documents showing that uments had been delivered to Mexico’s Energy
$342mn worth of gas condensate and natural Minister Rocio Nahle last August. As of press
gas had been burned off at the fields, which time, however, it was not clear whether Nahle
Mexican President Andres Manuel Lopez ever responded. Neither SENER nor Pemex has
Obrador has identified as high-priority targets commented publicly on the matter.
for development. Pemex flared $275mn of gas Reuters has published a number of critical
and condensate at Ixachi and $67mn at Quesqui, articles on Pemex’s flaring practices at Ixachi
it said, adding that the NOC had calculated the and Quesqui, as well as other hydrocarbon fields
value of the wasted materials on the basis of off the coast of Tabasco and Veracruz states, over
non-public contracts. the last year. It has, for example, obtained infor-
It further noted that Pemex had not pre- mation showing that the NOC chose to pay fines
viously revealed that condensate was being for violating environmental regulations rather
destroyed at either field. This lack of disclosure than risk production delays or stoppages and
does not contravene Mexican law, which does that SENER attempted to delay the roll-out of
not require that information on condensate new legislation that might have adverse effects
flaring be made public, it said. It did point out, on upstream performance.
though, that the company was not meeting Following the publication of these articles,
other requirements. “The objective should be to Pemex has said it intends to reduce flaring.
maximise making use of all hydrocarbon prod- The Mexican government has also come under
ucts in the field,” said one of the documents cited international pressure to reduce gas burn-offs
by Reuters. and methane leaks.
The documents stated that Pemex had Meanwhile, SENER also recommended in
extracted 201.2bn cubic feet (5.698bn cubic the documents viewed by Reuters that Pemex
metres) of gas and 24.3mn barrels of conden- make changes to eliminate flaring, saying that
sate from Ixachi during the three-year period the company ought to “[avoid] the burning off
under review, even as it flared 62.9 bcf (1.781 and the destruction of commercial value of the
bcm) of gas and 310,000 barrels of condensate. hydrocarbon products” that might instead be
They then declared that the company had not used to supplement imports. At present, most
been able to meet the production goals it had of Mexico’s gas is imported by pipeline from
set at Ixachi “because wells and infrastructure the neighbouring US. The country also imports
are not in place.” some LNG by tanker. ™

P6 www. NEWSBASE .com Week 03 18•January•2023