SEG13: Pemex official addresses offshore technology

High-quality technology and proper backing investments are keys to “[allowing] Mexico to continue as one of the main hydrocarbon producers of the world,” said Jose Antonio Escalera-Alcocer, deputy director of exploration for Pemex Exploration and Production at a luncheon held during the annual meeting for the Society of Exploration Geophysicists (SEG).

Escalera-Alcocer discussed Pemex's plan to “intensify exploration activity in the Gulf of Mexico, where most of the resources were located,” explaining that quantitative investigation and research has been conducted to offset the high costs - and potentially low returns - of deepwater exploration.

Discoveries like Trion-1, Pemex’s first deepwater oil discovery in the Gulf of Mexico, have helped to reduce uncertainty and encourage investing in the technology necessary for further exploration, Escalera-Alcocer said. Following the Trion-1 discovery, located near the US in the Cinturon Plegado de Perdido area, Pemex swiftly struck two other large wells, the nearby Supremus-1, followed by the Navegante-1 well. All three discoveries were made between August and November 2012.

According to Escalera-Alcocer, Pemex now has a diversified strategy and greater investment, allowing the state oil company to better accomplish its goals, among them booking more reserves; accelerating the evaluation of offshore Gulf of Mexico; and expanding their portfolio of exploration of wet gas.

Mexico is currently in the midst of proposed tax and energy reforms, with the Pemex standing to benefit heavily from both. The tax reform deals specifically with decreasing the government’s share of Pemex’s profit, and the energy reform calls for its restructure.

The luncheon, assembled by the organization’s Global Affairs Committee, was one of four taking place throughout SEG’s weeklong conference.  Nearly 300 people were in attendance, a significant boost from the preceding years and indicative of the growing interest in Mexico and Latin America, committee members said.

Image: Escalera-Alcocer, shown addressing the luncheon crowd SEG's 2013 annual meeting, joined Pemex Exploration and Production in 1982.