El Dario de Yucatan – Mexico’s energy reform will not harm the ejido system or ejidotarios, said Secretary of Desarrollo Agrario, Territorial y Urbano Jorge Carlos Ramirez Marin.
Reuters – The allure of investing in Mexico’s historic oil sector opening has been dimmed by the plummeting price of crude, putting pressure on the government to offer bigger incentives to private investors in the first major round of contracts up for grabs.
Financial Times – You don’t have to look far to see the impact on Mexico of falling oil prices (now close to a five-year low): just take a look at the trade balance of state giant Pemex . It slumped by half in one month, to $656 million in October from $1.3 billion in September, and that was before the combination of Mexico’s lower production and lower world prices really began to bite.
So now would be a good time to take a cold look at how much damage falling prices could really do to Mexico as it prepares to open up its oil sector to private investment, what Mexico could do about it, what wider impact that could have, and what the US and the International Monetary Fund could do to help.
Bloomberg – Cydsa is diving into new energy opportunities at home. The maker of products ranging from refrigerant gases to acrylic yarn announced a joint venture with Petroleos Mexicanos to store liquefied petroleum gas in a salt cavern for 20 years, at a planned cost of about $130 million.
Sentido Comun – Comision Federal de Electricidad took another important step in plans to cede control of telecommunications by seeking assignment to the Federal Telecommunications Institute.
Business Wire – InterGen says its Altamira Compression Station in Tamaulipas is now operational. The 40,000 horsepower station will transport up to 1.3 billion cubic feet per day of natural gas in Mexico’s pipeline system.
The Street – With prices of crude oil at fresh five-year lows, investors are wondering when Saudi Arabia might finally cry uncle, cut oil production and reverse the dramatic slide in oil prices. Yet Mexico, a non-OPEC country and third largest exporter of oil to the U.S. behind Canada and the Saudi Arabia, could have nearly as much near-term influence on oil prices as Saudi Arabia if they cut their own production.
Reuters – Mexico said will cap the number of shallow water contracts companies can bid for as it outlined the tender for the first leg of the country’s energy sector opening.
Bloomberg – KKR & Co. is looking at possible investments in Mexico as the nation ends a seven-decade state monopoly in oil production, said David Petraeus.
Financial Times – Mexico is developing gas futures contracts to exploit demand for hedging tools as the country opens up the hydrocarbons sector it has closed for nearly 80 years.
Financial Times – Appearances are very important in Mexico. So the head of Pemex looked rather conspicuous by his absence at the launch of the long-awaited tender terms.
CNBC – Mexico is one of the few oil producers that might not be concerned about the massive drop in the price of oil. Regardless of market price, the nation will get $76.50 per barrel.
Bloomberg – Mexico expects a first package of offshore oil licenses to generate about $14 billion of investment as the country seeks to halt a decade-long output slide.