VIEW FROM THE TOP
A YEAR RICH IN DISCOVERIES JUAN JAVIER HINOJOSA 24
Director General of PEMEX E&P
Q: How has PEMEX’s upstream strategy changed with the
assignment to a contract without a partner and a special
new face of the industry?
tax regime was approved for 21 assignments by the Ministry
A: PEMEX’s business plan before the 2013 Energy Reform
of Finance. In 2018, PEMEX boasted the highest number of
was directed at attaining specific hydrocarbons production
exploration contract obtained from Rounds 2.4 and 3.1, with
targets, improving process efficiency, satisfying the
a total of 11 contracts. Regarding its production activities,
country’s energy demand with a competitive-cost structure
the Misión and Olmos fields were migrated from assignment
and strengthening the company’s social responsibility
to a contract with a partner, a shutdown wells reactivation
policies. After the reform, new conditions focused PEMEX’s
contract was awarded to a third party and PEMEX obtained
operations toward businesses that generate higher
the required endorsement to bid seven onshore clusters.
value. Our business plan after the Energy Reform was designed under a profitability target and an open market
Q: How is PEMEX dealing with Cantarell’s production drop
vision, recognizing the possibility of creating alliances or
to stabilize and eventually increase production numbers in
associations to reinforce PEMEX’s capabilities to achieve
a profitable, safe and sustainable manner?
its targets in this competitive environment. To ensure
A: There is no doubt that in recent years the main challenge
the NOC is on track with its objectives and expected
has revolved around replacing the production decline of
upstream performance, we are closely monitoring specific
Cantarell and stabilizing the production platform of Mexico.
parameters, such as its financial balance, oil production,
Another important target of this administration is to operate
production costs, reserves incorporation and the safety,
in a safe and sustainable way, a continuous imperative
health and environment protection frequency index.
for the NOC since its creation. To increase production, PEMEX business plan focuses on the most profitable fields
Q: What were the highlights of PEMEX’s exploration,
or assignments under its operation and finding greater
development and production activities during 2017-18?
efficiencies through process improvement measures and
A: 2017 was rich in discoveries, as the 11 new fields attest.
new hiring strategies that will increase its activity. PEMEX
In deepwater, Nobilis holds promising reserves. In shallow
also designed an aggressive program of farmouts or
waters, Koban, Teekit, Suuk, Hok, Cahua, Octli and Xikin
strategic associations that will increase the relevant oil fields’
were the outstanding additions while Chocol, Valeriana
production, spearheaded by better practices, technology
and Ixachi will increase our onshore portfolio. Through
and larger investments. In other words, PEMEX needs to
strategic partnerships, we continued building a successful
develop its hydrocarbon reserves at a greater speed.
track record in the country’s licensing rounds. In Round 1.4, we were awarded Block 3, while in Round 2.1 we were
Parallel to that, secondary recovery projects are being
able to claim Blocks 2 and 8 with our partners. We also
designed to increase the recovery factor of existing
managed to allocate our first farmout in the Trion block.
fields and assignments. To obtain production in the short
From a production standpoint, PEMEX’s onshore farmouts
term, the new discoveries made by PEMEX are also being
Cárdenas-Mora and Ogarrio were signed. While the
scheduled for their development in shorter timeframes
Santuario-El Golpe assignment was migrated to a partner
compared to previous years. In the medium term, PEMEX
contract scheme, the Ek-Balam field was migrated from an
is preparing to develop unconventional reserves, such as shale reservoirs. To do this, unconventional wells are being scheduled in the areas with the greatest potential
Juan Javier Hinojosa has been at PEMEX since 1980. In 1998
to corroborate existing reserves and extract them in the
he became manager in Analysis and Evaluation of Exploration
coming years. In the long term, the deepwater projects
Investments. He took up his current position as Director of
will contribute to the strategy of increasing the production
Exploration and Production in May 2015
capacity and profitability of PEMEX
