Mexico's Pemex to revise its Chicontepec oil project

By Adriana Barrera and Ana Isabel Martinez
MEXICO CITY, June 15 (Reuters) - Mexico's state oil monopoly
Pemex will revise its key Chicontepec oilfields project, seen as
crucial to boosting output in coming years, and may also adjust
its overall investment plans, a Pemex adviser told Reuters on
Friday.
Chicontepec, which is located on the country's gulf coast
and holds 41 percent of Mexico's total crude reserves, has been
unable to boost production despite heavy investment.
Pemex, the world's No. 7 oil producer, has managed to
stabilize its overall output at around 2.5 million bpd after a
sharp decline at its largest fields. But the company needs to
ramp up exploration to avoid becoming a net crude oil importer
within the next decade.
"Now that we are going to revise the budget for the coming
year, there will no doubt be a clear revision and adjustment of
the project," said Pemex adviser Fluvio Ruiz.
The massive Chicontepec project currently produces on
average about 70,000 barrels per day (bpd) and is struggling to
boost output to the 100,000 bpd, Pemex executives are aiming for
by the end of this year.
Mexico's oil regulator, the National Hydrocarbons
Commission, or CNH, has also criticized the development plan
associated with several Chicontepec fields and signaled that the
project runs the risk of losing money.
"It's important to review each year how (the project) is
evolving," said Ruiz, adding that it's "possible" investment
decisions will be revised.
Chicontepec is difficult to exploit due to millions of
barrels of oil scattered across many small deposits, a
geological feature that makes production costly and slow.
Proven reserves at Chicontepec totaled 650 million barrels
as of the beginning of this year, according to Pemex data.