PEMEX Oil Output Slashed by 20Mb/d After Accident

PEMEX crude oil production has plunged by approximately 20Mb/d following a fire at an offshore platform on Saturday, resulting in several injuries and at least one fatality, according to a source at the state energy company, reports Reuters. Although the reduction represents only a 1% decline, an extended outage could exacerbate the existing downturn in crude oil production, which hit a 45-year low in February.

The Akal-B platform in the Gulf of Mexico remained offline as of Tuesday, with workers striving to restore operations, as reported by Reuters. Since Sunday, when PEMEX reported the fire and initiated an inspection to determine its causes, the company has not provided further updates, aiming to reinstate operations at the processing center.

PEMEX currently reports its oil and condensate production at 1.8MMb/d, with crude oil constituting 1.5Mb/d, marking its lowest level in 45 years.

PEMEX had previously confirmed one death following the Akal-B fire, that of a contractor from COTER. Fatal accidents at PEMEX’s offshore facilities in recent years have prompted scrutiny, with some experts attributing them to inadequate maintenance investment, a claim PEMEX has consistently refuted.

Additionally, the NOC reported an oil spill in the Gulf of Mexico, adding to its operational challenges. The spill originated from the Akal-J offshore platform around March 22 and persisted until April 9, coinciding with the explosion at the Akal-B platform, according to a statement from the non-governmental organization Conexiones Climaticas.

Environmental associations have highlighted a 152% increase in PEMEX accidents over the past two years, coupled with a 49% reduction in its maintenance budget. They argue that this trend underscores PEMEX’s prioritization of accelerated fossil fuel extraction over infrastructure security and maintenance.