Chief executive of Mexican state oil company Pemex, Octavio Romero Oropeza announced on Friday the discovery of a giant crude oil deposit in the southeastern Mexican state of Tabasco with the confirmed crude oil reserves equivalent to 500 million barrels, APA reports citing Sputnik.
"We can confirm the existence of a giant deposit equivalent to 500 million barrels of crude oil in a 3P reserve", Romero Oropeza said as quoted by Financiero newspaper.
According to him, the well-drilling works have already started and the company plans to extract up to 69,000 barrels per day from the site next year. By 2021, Pemex plans to increase oil production in the area to 110,000 barrels per day.
The Mexican state oil company has intensified drilling in the country due to depleting reserves of the fields, which are under development. Pemex's oil output has been dropping in recent years, with the company having accumulated around $100 billion in debts. Over the past six years, the production slumped by almost 30 percent, falling by 7 percent last year alone.
Mexican President Andres Manuel Lopez Obrador has made it a top priority to support Pemex. The draft budget of Mexico for 2020, published in September, includes the allocation of $4.3 billion for the additional capitalization of Pemex, as well as measures to reduce its the tax burden.