Pemex 'plans $6bn Cantarell revamp'

Cantarell plan: Pemex turns eye toward stabilising production

State-led Mexico oil company Pemex envisions a $6 billion plan starting in 2017 designed to stabilise production at declining Cantarell field, an official said this week according to reports.

The plan aims to add output of 100,000 barrels per day using secondary recovery techniques, asset manager Miguel Angel Lozada was quoted as saying by the El Financiero newspaper in Mexico City.

The field produced well over over 2 million bpd at its peak in 2004 but now only pumps some 340,000 bpd.

Top-performing Cantarell area Akal "is in decline; if we don't do this process, it will continue declining," El Financiero quoted Lozada as saying.

Pemex aims to retain shallow-water and mature assets like Cantarell, where it has the most experience, as Mexico moves through the process of opening its energy sector to private competition for the first time in 75 years.

The country's energy ministry is currently reviewing the state-led company's list of properties it would like to keep in a process known as Round Zero, and is due to determine in the coming months which may be opened up to outside participation.

Observers have also expressed optimism that the sector's opening will allow for more flexibility in Pemex's budget, which will allow it to target greater reinvestment in existing assets.

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