Pemex makes deep-water gas discovery in Gulf

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By Carlos Manuel Rodriguez
Bloomberg News

Petroleos Mexicanos, Latin America’s largest oil producer, said it discovered natural gas in deep waters in the Gulf of Mexico.

Pemex, as Mexico’s state-owned company is known, said its Piklis-1 well holds about 400 billion to 600 billion cubic feet of natural gas, according to an e-mailed statement today. At 6,326 feet, Piklis is the Mexico City-based company’s deepest exploration project and is located 89 miles northwest from Coatzacoalcos port.

Pemex has found mostly gas in the 10 deep-water wells it successfully explored since 2004, according to data compiled by Bloomberg News. The Mexico City-based company hasn’t yet developed plans to exploit the deposits, which could boost gas reserves by almost 1 trillion cubic feet, as it focuses on crude production amid low natural-gas prices.

Carlos Morales, Pemex’s head of production and exploration, said last month that plans to develop gas discoveries will depend on the U.S. gas futures market.

Natural-gas futures in New York averaged $4.20 per million British thermal units in the first quarter, a 16 percent drop from a year earlier, as new wells from Wyoming to Pennsylvania created excess supply in the North American market. Natural gas for June delivery was little changed $4.345 per million British thermal units at 9:15 a.m. on the New York Mercantile Exchange.

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