Fuel Fix – Mexico’s latest tender in its historic opening of the country’s energy industry likely won’t attract some of the most recognizable names in the industry, but it could be a chance for smaller companies to get in on the action.
Sentido Comun – The consortium of companies Cobra, Initec and Avanzia won the CFE contract to build the $425.3 million Valle de Mexico central power generation plant.
Sentido Comun – Petroleos Mexicanos canceled a third contract with Paragon Offshore for work on an oil platform this week after the state-owned oil company reduced its spending due to the collapse in oil prices.
By David Alire Garcia and Adriana Barrera / Reuters
The next round of contracts in Mexico’s opening of its oil and natural gas industry should bring in about $620 million in investment in the first five years, Energy Minister Pedro Joaquin Coldwell said on Tuesday.
The 26 onshore oil and gas areas to be tendered are spread across five states and are believed to contain 2.5 billion barrels of oil equivalent in remaining resources.
Edgar Rangel, a member of the National Hydrocarbons Commission oil and gas regulator, said the 26 areas would have average production costs of between $10 and $20 per barrel, below previously announced shallow water contracts.
The 26 areas are the third installment of the so-called Round One tender.
Clean Tecnica – One of the world’s largest wind turbine manufactures, Vestas Wind Systems, has been awarded a contract to provide wind turbines for the Tres Mesas wind energy projects in the northeast of Mexico.
EFE – Details of the third phase of the Round One oil and gas offerings will be released next week, with 29 onshore areas in Chiapas, Nuevo Leon, Tabasco, Tamaulipas and Veracruz to be auctioned.
Sentido Comun – Kuo Group, an industrial group with interests in auto parts, chemicals and consumer goods, has signed a contract with Iberdrola to build a cogeneration plant at the site of its subsidiary Dynasol in Tamaulipas.
EFE – Output by Mexican state-owned oil giant Petroleos Mexicanos’ exploration and production unit was unaffected by the alleged fraud committed by oil-services company Oceanografia, Pemex executives told members of a special Senate committee.
Bloomberg – Months after acquiring Mexican oil with the biggest discount in 20 years, Asian refiners are finding problems. At least two buyers experienced difficulty processing Mexican oil because of its impurities.
Sentido Comun – Petroleos Mexicanos announced that the construction of 22 vessels progresses after its and the Navy’s engineers reviewed the progress of the program. Pemex plans to spend 3,400 million pesos ($223.4 million) to build the boats.
EFE – The price of Mexican crude oil closed on Wednesday with a marginal decline of 13 cents compared to Tuesday’s close, selling on the international market at $ 52.80 a barrel.
WSJ – An expected wave of international geological firms set to scan Mexico’s oil patch for oil and gas reserves will give the country a clearer picture of its riches, the nation’s top energy regulator said.
PVTech – Joint ventures involving Spain-based energy company Aljaval have received electric energy generation approval for eight solar power projects with a combined capacity of 220MW.
Reuters – Mexico’s Federal Electricity Commission said it has signed a memorandum of understanding with construction company ICA to work on joint power generation projects as part of efforts to open up the country’s energy sector.
FT – Pemex has become the latest to take advantage of the slump in borrowing costs in the Eurozone. The company is looking to raise as much as €2.5bn through the sale of a two-tranche euro-denominated bond on Tuesday.
Wind Power Monthly – Acciona has been awarded a 129MW deal by an unnamed company for a project in Mexico. Acciona said the order takes its total sales in Mexico to 988.5MW, with 38 percent of orders for its 3MW turbine.
AP – Pemex and U.S.-based First Reserve are announcing a $1 billion deal to invest in the energy sector. Petroleos Mexicanos says that the agreement covers potential projects including infrastructure, sea transport, cogeneration and processing.
Fuel Fix – Mexican energy regulators expressed confidence that low oil prices won’t suppress activity as the country auctions exploration and production rights for the first time in more than 75 years.
Sentido Comun – Petroleos Mexicanos said that production has resumed at the Abkatun oil production center after a fire on one of the platforms killed four people and left 16 more injured.
BBC – Pemex says it is still searching for three workers who went missing after a fire at an offshore oil platform. Four people were killed in Wednesday’s fire, the cause of which is unknown. More than 300 workers had to be evacuated from the rig in the Gulf of Mexico.