Photo: Oil Price

By KELIN DILLON

The deadly explosion on Mexican oil venture Petróleos Mexicanos’ (Pemex) Ku-Alfa platform in the Campeche Sound, which left five dead and two missing, will now result in a 25 percent loss in production for the state-owned company.

A total of 142 wells were closed after the disaster, slowing production by 421,000 barrels of oil a day.

“The platform is not working yet, so they cannot continue to extract oil, we hope to resume production as soon as possible,” said Pemex CEO Octavio Romero Oropeza. “Exports will surely be lower this month.”

The closure will likely affect oil refineries all across the Gulf of Mexico, which depend on Mexican oil for 38 percent of their foreign crude imports, including those located in the United States.

Romero Oropeza likewise denied the incident occurred due to lack of maintenance and attributed it to a freak accident, despite reports that Pemex had only used around 30 percent of its investment budget at the time.

All in all, the explosion is set to cost Pemex $26.2 million per day the Ku-Alfa platform remains closed

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