Mexico’s Star Oil Field Cantarell to Continue Fading in 2009

Output at Mexico’s main oil field Cantarell will continue sliding this year despite new investments in drilling and well maintenance, putting Petroleos Mexicanos’ 2009 production target at risk.

A combination of old age and poor long-term planning have frustrated state-run Pemex’s efforts to stem the collapse at Cantarell. Production is down by more than half since peaking in 2004.


The woes at Cantarell and delays in getting new projects off the ground elsewhere threaten Mexico’s overall target of 2.75 million barrels a day for this year. In November, Mexican output was the lowest since 1995 at 2.71 million barrels a day, partly due to port closures that forced Pemex to shut in some production.

Pemex officials expect rising production at other fields to compensate for Cantarell this year, but outside observers are skeptical. The International Energy Agency expects Mexican production to fall by 245,000 barrels a day in 2009.

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