Xux

Xux Oil Project Profile

Location and Geology

The Xux oil field is located in the shallow waters of the Gulf of Mexico, specifically within the Litoral de Tabasco complex. It is situated approximately 55 kilometers northeast of the maritime terminal in Dos Bocas, at a water depth of 14 meters. Geologically, the Xux field is part of the Reforma-Akal Horst, a structural feature that hosts several hydrocarbon-bearing formations.

Reservoir Characteristics

The Xux field primarily contains a Late Jurassic gas and condensate reservoir. This reservoir is still in the process of being delineated, indicating ongoing exploration and development activities to fully understand and exploit its potential.

Reserves

As of January 2014, the Xux field holds significant reserves:

• 1P (Proven) Reserves: 112.5 million barrels of oil equivalent (boe).
• 3P (Proven, Probable, and Possible) Reserves: 836 million boe.

Production

Production at the Xux field commenced in June 2014. By the end of 2014, the field was producing an average of 38,000 barrels of crude oil per day (b/d), contributing to the overall crude oil production of PEMEX.

Development Strategy

The development of the Xux field is part of a broader strategy for the Tsimin-Xux complex, which includes:

• Drilling of 63 exploratory wells.
• Conducting 73 geological studies.
• Acquiring 2,318 square kilometers of seismic information.
• A program to obtain information from vertical wells to improve seismic interpretation and delineate salt bodies in the region.

Infrastructure and Integration

The project involves linking the infrastructure of the Xux field with the existing production infrastructure at Litoral de Tabasco. This includes platform-to-shore pipeline infrastructure, with projects like McDermott’s PBLitoral-A expected to play a crucial role in this integration, aimed to be completed by 2015.

Significance and Future Prospects

The Xux field is considered one of PEMEX's most significant discoveries of non-associated natural gas, which is crucial for fulfilling national gas demand. It is a priority field in PEMEX’s Strategic Natural Gas Program. The field is expected to become a major light crude producer, helping PEMEX to blend light oil with heavier oils to achieve the necessary API degree for the Maya mix.

Investment and Production Targets

The Tsimin-Xux project, which includes the Xux field, aims to develop 403 million barrels of oil and 18.4 billion cubic meters (2.9 trillion cubic feet) of gas from 2013 to 2048, with an allocated investment of US$8 billion. The project targets significant production increases, with expectations to yield around 300,000 b/d from the complex by 2016.

In summary, the Xux oil project is a critical component of PEMEX's offshore production in the Litoral de Tabasco complex, offering substantial reserves and production potential, and playing a key role in Mexico's oil and gas sector.