Category Archives: Energy

Pena Nieto axes Pemex CEO, orders cuts amid oil slump

Instructions have been ordered that all Pemex units must become more profitable.
Instructions have been ordered that all Pemex units must become more profitable.

By Gabriel Stargardter, Ana Isabel Martinez / Reuters

Mexican President Enrique Pena Nieto on Monday removed Emilio Lozoya, the head of ailing state-oil firm Pemex, replacing him with the country’s social security chief whom he tasked with cutting costs amid a global oil rout.

A close ally of Pena Nieto, Lozoya became Pemex CEO in December 2012, overseeing the company during a momentous energy reform that ended Pemex’s decades-long monopoly over the country’s oil and gas sectors.

However, his term coincided with a sharp fall in the price of oil, which, along with years of declining production, has led to record losses and drastic cost-cutting measures.

“I’ve given instructions to the new director to make the efficiency and profitability of all Pemex’s activities his top priority, with an emphasis on its international competitiveness,” Pena Nieto said at a press conference in Mexico City.

“It will be necessary to adjust the cost structure, revise the spending program and strengthen the investment processes, making use of the new joint venture and investment schemes provided by the energy reform.”

Pemex’s new boss, Jose Antonio Gonzalez, has been the director of Mexico’s Social Security Institute since 2012. Mikel Arriola, the head of health regulator Cofepris, will replace him, Pena Nieto said.

Mexican Finance Minster Luis Videgaray, who is said to have had a frosty relationship with Lozoya, said that Pemex’s board would announce fresh budget cuts in the coming days due to the slump in oil prices.

http://www.rigzone.com/news/oil_gas/a/142956/Mexicos_Pena_Nieto_Axes_Pemex_CEO_Orders_Cuts_Amid_Oil_Slump

Mexico working on plan to help workers in oil industry

Sputnik – Mexican President Enrique Pena Nieto has ordered to work out a series of measures to support people working in the oil industry, which has been hard-hit by the fall in oil prices. At the beginning of his term, oil exports were responsible for 40 percent of Mexico’s budget, since then the figure has gone down to 8 percent.

http://sputniknews.com/latam/20160129/1033870176/mexico-plans-job-opportunities-for-oil-industry.html

Fluor picked for $1 billion Madero refinery revamp

FuelFix – Irving-based Fluor Corp. has been contracted to rebuild much of a major Mexican refinery in a $1 billion expansion project. The Madero Clean Diesel project at the Madero Refinery in Tamaulipas is part of the nation’s effort to modernize and expand its refineries, in addition to making them more environmentally friendly.

http://fuelfix.com/blog/2016/01/11/fluor-contracts-to-build-1-billion-refinery-in-mexico/

Mexico plans deep-water oil auction next year

The deep-water announcement came a day after the National Hydrocarbons Commission, the government’s oil regulator, successfully auctioned off all 25 onshore contracts.
The deep-water announcement came a day after the National Hydrocarbons Commission, the government’s oil regulator, successfully auctioned off all 25 onshore contracts.

By Laurence Iliff / Wall Street Journal

On the heels on this week’s successful auction of 25 onshore blocks with modest oil and gas resources, Mexico’s Energy Ministry on Wednesday announced plans for a highly anticipated tender of deep-water exploration blocks in the Gulf of Mexico, not far from the U.S. side of the waterway.

The ministry said the government’s fourth oil auction since a 2013 energy reform opened up the sector to foreign and private companies will be announced by the third quarter of 2016 and held within 90 days of that announcement. Officials had been promising details on the deep-water auction over the past several weeks, prompting industry speculation on the holdup.

Ten blocks will be offered, the ministry said, including four in the Perdido area of the Gulf near the U.S. maritime boundary.

If commercial quantities of oil and gas are found on the Mexican side, the government would employ a license contract model similar to a concession used in other markets like the U.S. Mexico also allows production-sharing and profit-sharing contracts, although industry generally prefers licenses or concessions because of their relative simplicity to administer.

Missing from the Wednesday announcement, however, was the expected inclusion of heavy-oil projects and other joint ventures with national oil company and former monopoly Petróleos Mexicanos.

http://www.wsj.com/articles/mexico-plans-deep-water-oil-auction-next-year-1450312499

Mexico’s oil auction beats expectations

Reuters – Mexico’s oil regulator awarded all 25 contracts on offer on Tuesday, beating expectations despite a dramatic plunge in crude prices, in an auction aimed at boosting new Mexican oil companies after a historic sector reform finalized last year.

Peak oil production from the 25 onshore fields will reach 77,000 barrels per day and attract investment of $1.1 billion, Energy Minister Pedro Joaquin Coldwell said in a tweet following the auction. Mexican officials had said they would consider the auction a success if at least five contracts were awarded.

“This is a triumph for Mexico,” Juan Carlos Zepeda, president of Mexico’s oil regulator CNH told local radio after the auction.

http://www.reuters.com/article/mexico-oil-idUSL1N14427320151216