Calderon Plans US$76.5bn for Hydrocarbons Output
Mexico's President Felipe Calderon has unveiled his administration's 2007-12 infrastructure development plan, which entails investments of 822bn pesos (US$76.5bn) in the production of hydrocarbons, according to plan documents. The plan outlines primary objectives of increasing E&P activities and reducing the divide between hydrocarbons extraction and the incorporation of new reserves. Calderon's administration aims to minimize the country's falling oil output in order to have a 2.5Mb/d level in 2012, down from 3.256Mb/d in 2006. In the plan's so-called "outstanding scenario," production would only fall to 3.2Mb/d by 2012.
Mexico was the sixth-largest global crude and NGL producer in 2006 with 3.7Mb/d and had the world's 16th largest proved oil reserves at 12Bb.
With regard to natural gas production, the plan says the goal is to maintain production of natural gas at roughly 5Bf3/d (142Mm3/d), with an "outstanding" scenario of 7Bf3/d. In 2006, Pemex produced an average of 5.36Bf3/d, up 11% from the previous year. In pursuing the development of hydrocarbons E&P infrastructure, Calderon wants the hydrocarbons reserves replacement rate (RRR) to reach 50% by 2012. RRR of proved hydrocarbons was 41% in 2006.
Investment in hydrocarbons production infrastructure represents 32.4% of Calderon's entire 2.53tn-peso plan, more than 50% more than overall infrastructure investment in real terms compared to the previous six-year period, Calderon said in a speech. A total 47% of the planned funds are earmarked for hydrocarbons in general, which also includes refining, gas and petrochemicals. The energy sector as a whole, which also includes electricity, is destined to receive 62.4% of Calderon's 2007-12 infrastructure investment plan.
The plan specifically highlighted plans for the incorporation of unassociated gas reserves in the Burgos, Veracruz and Macuspana basins. Further, incorporation of associated oil and gas reserves are expected to take place in the Sardina Comalcalco, Campeche Poniente, Campeche Oriente, Crudo Ligero Marino areas. The evaluation of unassociated gas potential will be conducted at the Delta del Bravo, Lamprea and Lankahuasa areas, while the Cuichapa area will be evaluated for associated oil and gas potential. Deepwater exploration projects will only be possible in the "outstanding" scenario, according to the plan.
Development of unassociated gas is planned for the Veracruz and Burgos basins as well as at the Crudo Ligero Marino project. Associated oil and gas development will take place at the Cantarell, Antonio M Bermudez and Ku-Maloob-Zaap fields. Again, the plan emphasizes deepwater production projects will only be possible in the "outstanding" scenario.
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