Mexico finds large shallow water oil fields

Mexican state energy giant Pemex announced its biggest exploration success in five years, the discovery of new shallow water oil fields that could yield 200,000 barrels per day.

The fields were found in four locations in the Gulf of Mexico and production could begin in around 16 months, helping Pemex reverse declining output, said company director Emilio Lozoya yesterday.

Altogether, the locations are estimated to contain 350 million barrels of crude oil.

The discovery comes a month before Mexico launches the first auction for other shallow water oil fields since it passed a historic reform in 2013 that opens the sector to foreign investors for the first time since 1938.