PEMEX Cites "Doubts" About Chincotpec's Profitability - Projections Now 60K B/D By Year-End, Not 72

[hatrack]

Sept. 10 (Bloomberg) -- Petroleos Mexicanos, the state- owned oil company, needs to find a profitable way to develop its Chicontepec field, Chief Executive Officer Juan Jose Suarez Coppel said.

There are “certainly doubts” about the field’s profitability and the technology that should be used, said Suarez Coppel, who took the helm of Latin America’s largest oil producer on Sept. 8. “Chicontepec has a great potential, and we have to keep investing to find a way to exploit it in a profitable manner,” he said today in a Radio Formula interview.

The government is “evaluating” its $11.1 billion Chicontepec investment after the field missed production targets, Energy Minister Georgina Kessel told Bloomberg last week. Mexico City-based Pemex in June cut its forecast for the onshore field to 60,000 barrels a day by year-end, down from a previous prediction of 72,000.

“There’s a lot of potential onshore,” said Suarez Coppel. “Not so much in new fields, but developing the matured fields where we haven’t applied new technologies.”

EDIT

http://www.bloomberg.com/apps/news?pid=20601086&sid=aFSLTT1I.oMs

[GliderGuider]

1. "but developing the matured fields where we haven’t applied new technologies."

Suck that straw harder! Make 'er gurgle...

[hatrack]

2. Chocolate or strawberry?

Love dem bubbles!

[joshcryer]

6. More like, "replace that straw with a vacuum tube, and complex set of suction devices." :)

Reserves that were once thought not accessible became accessible. The same is true of Mexico, it's just that they don't have the tech to get it done. For better or for worse.

[Craftsman]

3. Mexico is screwed

There is oil there. But to get it and find it will take tech and people they do not have. They can get them in Houston. But the rub is they will not spend the money, they won't and can't seek foreign investments. To make PEMEX they nationalized all the US and European oil concerns years ago. These companies are not going to come back. They have no way of knowing if they will be forced out again without compensation. And every time a Mexican politico talks of selling part of PEMEX they are shouted down. All the money they can squeeze out of PEMEX funds social programs. But due to mismanagement that is running out.

[enid602]

4. Cartels

Maybe the drug cartels will be able to revive the petroleum ndustry once they´ve taken over. They have the money.

[joshcryer]

5. They don't have the knowledge or the tech, though. Which was the point the above poster was making.

They're kinda stuck.

[bhikkhu]

7. Yeah - when they had the time and the money, they did nothing.

Now they have declining fields, no time, no money, and no alternatives in place. The rest of the world might want to take a look at that and consider their own position along the curve...