Mexico's Pemex says Ixachi field holds 1.3 bn barrels of oil


State-owned Petroleos Mexicanos (Pemex) said Tuesday that the Ixachi onshore field in Veracruz state holds 1.3 billion barrels of oil equivalent (BOE), more than triple its original estimate.

That 1.3 billion BOE estimate includes proven, probable and possible, or "3P," reserves, Pemex exploration director Jose Antonio Escalera told a press conference in Mexico City.

Pemex expects to obtain 80,000 barrels per day of sweet, high-quality condensate from Ixachi, as well as 720 million cubic feet per day of natural gas, company CEO Carlos Treviño said.

He added that Ixachi is the largest onshore discovery in Mexico in the last 25 years.

The investment - he estimated - will total approximately 30 billion pesos ($1.5 billion).

The extraction forecasts provide the future administration of Andres Manuel Lopez Obrador, who becomes Mexico's president on Dec. 1, with "a great springboard," Treviño said.

He also said that hydrocarbons worth $40 billion at current prices could - in all likelihood - be extracted from the deposit.

Achieving the estimated production profile will require the drilling of up to 40 wells.

The Ixachi field is located beneath the town of Tierra Blanca, 72 kilometers (45 miles) from the Port of Veracruz.

According to Pemex, production from the deposit will help "meet the demand for gas and liquid hydrocarbons required by the country for its development in the short and medium terms."

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