Pemex Announces 7 New Crude Finds

Mexican state oil firm Pemex said on Tuesday it has made seven new crude discoveries in the shallow waters of the Gulf of Mexico and said it could invest upward of $10 billion to develop six oil and gas fields.

Pemex, which has been struggling with declining output for over a decade, said the seven finds at its Manik and Mulach fields could have proven, probable and possible reserves of 180 million barrels of oil equivalent.

Pemex also said it forecast peak production 210,000 barrels per day (bpd) in the second half of 2020 at its Manik, Mulach, Kinbe, Koban, Xikin and Esah fields, which are all currently under development.

It expects to invest between $7 billion and $10 billion to develop the six fields, discovered in shallow waters since 2015.

The company expects to begin production of crude at its Xikin field in 2019 and Esah field in 2020, saying it expects to add 90,000 bpd output from both fields in 2020.

Speaking at a news conference to announce the finds, Mexican Energy Minister Pedro Joaquin Coldwell said he hopes the downward trend in Mexico's crude reserves could be reversed in two years.

(Reporting by Ana Isabel Martinez; Writing by Anthony Esposito; Editing by Steve Orlofsky and Dan Grebler)