Mexico is home to some of the largest oil and gas operations globally, solidifying its importance in the energy sector. The country’s energy profile is primarily defined by the Gulf of Mexico, an area rich in hydrocarbons and where extensive offshore drilling and exploration activities occur.
As of January 2023, Mexico’s energy potential speaks volumes – the country boasts proven oil reserves of 6 billion barrels, with the Sureste Basin commanding an impressive 81% share, alongside 7.1 trillion cubic feet (Tcf) of natural gas reserves (EIA). This vast potential remains largely untapped, presenting exciting opportunities for future oil and gas projects. The sector’s evolution continues as Petróleos Mexicanos (Pemex), Mexico's state-owned oil giant, balances its operations and resources with increasing private sector investment. Pemex’s participation in the sector reinforces its position as a leader in Mexico’s energy market – the company’s ambitious 2021-2025 investment strategy encompasses 399 new projects, focusing on platform upgrades and pipeline installations.
However, Pemex isn’t only a major player in the Mexican oil and gas sector but a symbol of national pride. Private investments have surged alongside its initiatives, driven by contracts awarded between 2015 and 2018 to global companies like BP, Shell, Chevron, and ExxonMobil. These firms are collectively injecting over $18 billion to advance the region’s exploration capabilities and energy infrastructure.
Below, we explore the top oil and gas projects positioning Mexico as an influential force in the global energy sector!
1. Ku-Maloob-Zaap (KMZ)
The Ku-Maloob-Zaap oil field is one of Mexico's primary oil-producing fields, surpassing Cantarell, one of the largest oil fields in the world; however, its production has been declining. Discovered over 4 decades ago, this complex consists of five fields – Ku, Maloob, Zaap, Bacab, and Lum – covering an area of 121km² in the Bay of Campeche. The field has been at the forefront of enhanced oil recovery techniques, employing methods such as injecting natural gas and nitrogen to maximize extraction efficiency. Today, it’s one of the most significant contributors to Mexico's oil production, yielding approximately 580,000 barrels per day (bpd), which accounts for nearly a third of Pemex's total output.
Looking ahead, Pemex plans to modernize and develop the Ku-Maloob-Zaap field further. This is highlighted by a recent $1.65bn (USD) agreement with CME Oil and Gas and Opex to extend the Bacab and Lum fields under a Comprehensive Services Exploration and Extract Contract (CSIEE). This investment will hopefully increase crude oil production from these mature fields by up to tenfold, peaking at over 40Mb/d by mid-2028 by drilling nine producing wells and two injector wells.
The continued investment will help ensure the field remains a leading contributor in the country’s energy sector until it reaches its economic limit in 2069.
2. Zama
The Zama field in Block 7 of the Sureste Basin represents one of the most significant shallow-water oil discoveries in recent Mexican history. Initially discovered by Talos Energy in 2017, Zama is now operated by Pemex, with a consortium of international partners, including Talos, Wintershall DEA, and Harbour Energy (Offshore Energy).
Located at a depth of 165 meters, the field holds estimated recoverable reserves of 625.68 million barrels of oil equivalent (Mboe) and 243.29 billion cubic feet (Bcf) of gas. The development plan features two advanced Octapode-type platforms, 68km of subsea pipelines, and a dedicated onshore processing facility at the Dos Bocas Maritime Terminal in Tabasco.
The Unit Development Plan (UDP) for Zama received approval from Mexico’s National Hydrocarbon Commission (CNH) in mid-2023, marking a milestone advancement in one of the region’s most promising oil and gas projects. Production is scheduled to commence in December 2025, with ambitious targets set for peak production – reaching 180,000 barrels of oil and 70.35 Mcf of gas daily by 2029. The development strategy includes an extensive drilling campaign featuring 29 production wells and 17 water injection wells designed to ensure efficient resource recovery and maintain reservoir pressure.
The project’s financial framework reflects its scale and complexity. Development costs are estimated at $4.5bn, complemented by an equivalent allocation for operational and decommissioning expenses. French engineering firm Doris Group has taken the lead on the project's front-end engineering and design (FEED), ensuring world-class operational standards.
With production anticipated to continue until 2053, the field is vital to national output and positioned as a foundation of Mexico's long-term energy security.
3. Trion
Deepwater drilling takes center stage with the Trion project. Located in the Perdido Fold Belt of the Gulf of Mexico, this venture signifies Mexico’s first ultra-deepwater oil development. Stationed approximately 180km from the Mexican coastline and 30km south of the US-Mexico maritime border at an impressive water depth of 2,500 meters, Trion exemplifies technological advancements in offshore exploration. Initially discovered by Pemex in 2012, the project has evolved significantly following Woodside Energy’s involvement, which now holds a 60% stake, while Pemex retains 40%.
The project's infrastructure requirements reflect the complexities of ultra-deepwater extraction. It features a sophisticated in-field floating production unit (FPU) and a floating storage and offloading (FSO) vessel. SBM Offshore will provide the latter under a 20-year lease agreement. Plus, a 140km subsea pipeline will connect the field to the South Texas-Tuxpan gas pipeline, ensuring efficient natural gas transportation.
The development plan also encompasses 12 wells, with a mix of 10 water injectors and two gas injectors to optimize recovery. Production projections indicate a peak oil output of around 100,000 bpd once operations start in 2028, with gas expected to reach 124 million cubic feet per day (MMcfd) by 2035. Over its operational lifetime, Trion is estimated to recover over 400 million barrels of oil equivalent (MMboe) and 219 MMcf of gas until its economic limit in 2071.
The project's total investment requirement is estimated at $10.43bn, comprising $7bn in capital expenditure and $3.42bn in operating costs. Trion is poised to benchmark Mexico’s future endeavors in ultra-deepwater fields.
4. Ixachi
The Ixachi gas field is a significant asset in the nation's energy landscape. Located onshore in Tierra Blanca, Veracruz, Ixachi is operated by Pemex and is positioned to play a crucial role in meeting the country's energy demands over the coming decades. With considerable reserves, Ixachi ranks as one of Mexico's principal assets and is recognized as the fourth-largest gas field globally.
Initially, the field was declared to have reserves of 2 Bboe, with around 30% of these reserves confirmed through extensive testing. To date, approximately 10% has been extracted, showcasing the field's untapped potential. As part of its ongoing development, the Ixachi project has been working on several key strategies for the current year. These include incorporating over 400 million barrels of new reserves, recategorizing 180 million barrels to proven reserves, and an ambitious target to increase daily production by more than 40,000 barrels (Mexico Business News). This development is vital, especially as the Ixachi field currently contributes about 4% of the country’s daily gas output, with peak production expected in 2025.
As the second-largest gas producer in the country, Ixachi's output reached 505 Mcf in April, contributing significantly to Mexico's overall gas production. An ‘Ixachi Development’ project is also in construction and expected to start this year.
5. Hokchi
The Hokchi oil and gas field, operated by Hokchi Energy, is situated in the shallow waters of the Salina del Istmo basin, about 30km offshore from the Mexican state of Tabasco, also near Zama. Harbour Energy acquired a 37% non-operated interest in Hokchi following its purchase of the Wintershall Dea asset portfolio in 2024, making it one of its most significant assets in Mexico.
Financially, the Hokchi project entails an investment of approximately $2.5bn and has a current gross production rate of around 27,000 boe per day as of March 2023, with expectations to ramp up production to 37,000 bpd. It uses an extraction process involving two offshore platforms, Hokchi Central and Hokchi Satellite, connected to an onshore processing facility via pipelines. The extracted hydrocarbons are separated, treated, and sold to Pemex at this facility.
Over its lifespan, Hokchi is projected to produce a substantial quantity of hydrocarbons, targeting 147.8 Bboe with 45.4 Tcf of gas, relying on a recovery factor of 37%. The field has recovered approximately 17.25% of its total recoverable reserves and is anticipated to maintain production until its economic limit around 2040. Hokchi accounts for roughly 1% of Mexico's daily oil production and is recognized as the country's second-largest private crude oil and gas producer (Reuters). There is also talk of a Hokchi Phase 2 expansion project currently awaiting approval, which could further enhance the field’s output.
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