Mexico’s state-owned Pemex could lag its projections in recovering crude oil output following a deadly fire over the weekend, Reuters reported, citing people close to the matter. The blaze killed seven workers and injured six others. It knocked out 400,000 bpd of oil production in Ku-Maloob-Zaap (KMZ), Mexico’s largest oil field. The lost output is equal to about a quarter of Mexico’s total crude production.
CEO Octavio Romero Oropeza said this week that Pemex is working on restoring power and reconnecting 125 wells and expect a full production recovery by August 30. However, the sources said reconnection has been slow. Some of the sources also noted that Pemex had not completed key technical work, including restoring all the pumping systems, replacing burnt infrastructure, and controlling the wells’ pressure.
One of the sources added that the fire also hit the gas re-injection infrastructure, which meant it had to be replaced before fully recovering output. Another source said Pemex might recover about 70% to 80% of the lost barrels, but reaching a 100% recovery would be complex.
Romero said Pemex had re-plugged 35 wells and restored 71,000 bpd of production, with another 110,000 bpd expected by the end of the week. Pemex produced 742,000 bpd of crude oil from KMZ in July, below the field’s peak of 875,000 bpd seen in 2018.
