MercoPress. South Atlantic News Agency

Mexico strikes largest on land light oil deposit in a decade

Excellent news for Peña Nieto

Mexico’s government oil and gas giant Pemex confirmed the discovery of a crude reserve which could hold over 500 million barrels, and described as the largest on land strike in the last decade.

“Navegante 1” is located in the southern state of Tabasco, 20 kilometres from the state capital of Villahermosa and was drilled to 6.800 metres. The 3P reserves test (proven, possible, probable) of the well is estimated in over 500 million barrels, although other exploratory wells in the basin could take that figure to a billion barrels.

Pemex said that the drilling showed the existence of a column of 315 metres of light crude covering an area of 87 square kilometres, which makes it the largest discovery on land in the last decade in the country.

“The assessment of the oil potential of the field which covers 87 square kilometres indicates a 3P reserve estimate of over 500 million barrels of oil equivalent” said Pemex anticipating that further wells to establish the delimitation of the deposit are to be drilled.

The ‘Navegante 1’ on land adds to several discoveries offshore in the Gulf of Mexico which ensures Pemex can recover its level of reserves that have been falling for years. The discovery was also excellent news for the recently sworn in President Enrique Peña Nieto. Oil is a major export of the country and a strong contributor to the national budget.