Mature oil fields in Latin America: unlocking further value

Mature onshore oil fields in Latin America are a relevant source of value. Holding roughly 4,700 mmboe of remaining reserves, we estimate that these fields can still deliver US$5.4 billion in value. The resource base shows its resiliency as 70% of remaining reserves break even at a 10% discount rate, even after considering abandonment costs. However, challenging price conditions can put at risk as much as 40% of government revenues from mature fields. We estimate that opex and capex efficiencies can increase remaining value by two-thirds. Additionally, new recovery projects can provide a boost of roughly 900 mmboe to remaining reserves. NOCs certainly are the most relevant operators, yet regionally focused companies have placed a significant bet on mature fields. The main deliverable for this report is a slide pack which can be found in the downloads section.