Oil and Gas

Mexico's Pemex says it failed to replenish its reserves in 2015

MEXICO CITY, May 16 (Reuters) - Mexican state oil giant Pemex said on Monday it failed to replenish its proven reserves in 2015 with enough new discoveries, after its reserve-replacement ratio hit just 18 percent in 2014.

“During 2015, we obtained 120 million barrels of oil equivalent of proved reserves from discoveries. However, this volume was not enough to compensate for the reductions in reserves resulting from revisions, delimitations and decreased development and production in 2015,” Pemex said.

“As a result, there was no replacement of proved reserves in 2015.”

A reserve-replacement ratio of 100 percent would mean that an oil producer is replacing all the oil and gas it pumps with its reserves. Anything below 100 percent means the oil producer is unable to replenish proven reserves of its extracted hydrocarbons.

Reporting by Adriana Barrera