Category Archives: Energy

Eni hits oil in first offshore Mexico well

Financial Times – Italian oil company Eni has discovered “meaningful” reserves of oil off the coast of Mexico after drilling the first well by an international oil company since Mexico opened up its long closed oil sector to private investment under a 2013 reform. “Reserves are still being assessed, but the well indicates a meaningful upside to the original estimates,” Eni said in a statement.

https://www.ft.com/content/2cf085af-9d85-315e-ad63-9f09099a93ee

Energy could give U.S., Mexico common boon

LAT – Many analysts agree that in at least one sector — energy — the two countries still share opportunities for financial gain and have less incentive for conflict. Even if some terms of the North American Free Trade Agreement change, they say, energy can remain a boon for both countries’ economies, along with that of Canada.

Mexico to delay Round 2 shallow-water auctions

Offshore Magazine – Mexico will delay until June 19, 2017, the announcement of winners for the next phase of its oil and gas, the so-called Round Two tender, which includes 15 shallow-water areas in the Gulf of Mexico. The delay is designed to allow more companies to take part and to incorporate modifications suggested by industry.

http://www.offshore-mag.com/articles/2016/12/mexico-to-delay-round-two-shallow-water-auctions-by-three-months.html

Loosening of Mexico gas prices draws heat

WSJ – Mexico is moving to end eight decades of government-controlled gasoline prices, a step that will lead to a big jump in prices at the pump and could prompt a backlash against the government’s efforts to liberalize the country’s energy market. Price controls for gasoline will be scrapped in late March in parts of the country that border the U.S., where motorists are more accustomed to competition among gasoline stations, regulators said.

U.S. refiners cash in on Mexico fuel imports

Reuters – U.S. Gulf Coast refiners are cashing in on rising fuel demand from Mexico, shipping record volumes to a southern neighbor that has failed to expand its refining network to supply a fast-growing economy.

The fuel trade could top a million barrels per day (bpd) at times in 2017 as Mexico becomes increasingly dependent on the United States for strategic energy supplies and providing business worth more than $15 billion a year to refiners such as Valero, Marathon Petroleum and Citgo Petroleum.

http://www.reuters.com/article/us-mexico-usa-oil-insight-idUSKBN14B0FS

Will next Deepwater Horizon be in Mexico?

NYT – Mexico’s Energy Ministry began auctioning off the crown jewels of its oil reserves, deepwater tracts that, along with those for fracking, are supposed to set off an oil-and-gas rush south of the border. The auctions are a result of a 2013 law that opened the country’s oil and gas industry to private companies, after 75 years of public ownership. What could go wrong?

Plenty, as recent experiences in the United States suggest.

http://www.nytimes.com/2016/12/07/opinion/will-the-next-deepwater-horizon-be-in-mexico.html?_r=0

Successful auction encourages Mexico to step up oil opening

Mexico plans to hold a second, bigger deep-water auction around October next year, while Petróleos Mexicanos will likely seek as many as 25 partnerships with private firms.
Mexico plans to hold a second, bigger deep-water auction around October next year, while Petróleos Mexicanos will likely seek as many as 25 partnerships with private firms.

By Juan Montes and Robbie Whelan / Wall Street Journal

Buoyed by the results of Mexico’s first deep-water oil auction, widely seen as a big success, President Enrique Peña Nieto’s government plans to raise the bet.

Mexico intends to hold a second, much bigger deep-water auction around October next year, while state firm Petróleos Mexicanos will likely seek as many as 25 partnerships with private firms over the next two years, Energy Minister Pedro Joaquín Coldwell said in an interview.

“We’re going to be more ambitious, we’ll take a step forward because we now have more experience,” said Coldwell. “What we’ll very likely see are auctions with many more oil blocks than what we have seen so far.”

Mexico awarded eight out of 10 deep-water oil blocks in the Gulf of Mexico on Monday, exceeding expectations and attracting such oil majors as Exxon Mobil Corp. and the China National Offshore Oil Corp., despite a difficult backdrop of low oil prices and steep cuts in oil investments.

In a separate auction, Australia’s BHP Billiton won rights to partner with Pemex to develop the Trion field near the Mexico-U.S. maritime border—the first time Mexico’s state-oil firm partners with a private company to share risks and profits.

The results “encourage us to be much more ambitious in the coming auctions,” Coldwell said. “The menu [of blocks] is going to widen considerably.”

http://www.wsj.com/articles/successful-auction-encourages-mexico-to-step-up-oil-opening-1481037652

Deepwater auctions attracting interest

Offshore – Chevron Corp. has joined forces with Petroleos Mexicanos and Japan’s Inpex Corp. to bid next week for the right to explore for oil and natural gas, the first time the state-owned operator will partner with private companies to develop crude in the Gulf of Mexico. According to a Bloomberg report, seven groups and eight individual bidders have been qualified to participate in the Dec. 5 auctions that include the Trion field joint venture with PEMEX and ten other deepwater blocks.

http://www.offshore-mag.com/articles/2016/11/mexicos-upcoming-deepwater-offshore-oil-auction-attracting-great-interest.html