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Mexico makes largest oil discovery in more than a decade

Mexico City, Mexico — A land-based oil and gas deposit of high economic value was discovered in the coastal state of Veracruz, the state-owned company Petróleos Mexicanos (Pemex) announced Friday.

Mexico’s president was on hand to deliver the news, saying that the reserves discovered could reach 50 million barrels of oil equivalent.

In a statement, Pemex said the location of the deposit near the town of Cosamaloapan is advantageous because it is close to infrastructure for production and transportation, which will allow faster exploitation.

Pemex’s oil production has been on the decline for years. Since July, the average crude production was below two million barrels per day, its lowest level in 22 years.

The president of the Republic, Enrique Peña Nieto, announced the discovery with fanfares and flanked by state and federal officials in a coke plant in the state of Hidalgo, in the center of the country.

“This is the most important finding in terrestrial fields that this company has made in the last 15 years,” said Peña Nieto, who described the discovery as “good news”.

The oil company said that “this discovery can be extended even more, and even double in size.”

In addition, in the short and medium term will support to meet the demand for wet gas and light oil in the country, he said.

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