Sentido Comun – Gamesa Technology Corp. secured a contract to install 95 wind turbines in a wind farm located in the state of Coahuila that aims to generate 200 megawatts.
Platts – Falling crude oil production, falling refined product output and falling income have led many to believe that the sky is falling on Mexico’s state-owned oil company Pemex.
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.
Platts – Mexico on Tuesday began the partial roll-out of its day-ahead wholesale power market with prices for the northern Baja peninsula ranging from about $15.20/MWh to about $24/MWh, depending on the location and the time of day.
Gulf News – Mubadala Petroleum and Petróleos Mexicanos (Pemex) have signed an agreement to provide the basis for discussions between the two companies and their affiliates about potential opportunities in Mexico’s energy sector.
El Financiero – Petroleos Mexicanos said it maintains one of the lowest production costs worldwide -$7 in offshore fields and $12 in onshore fields – making its activities still profitable.
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.
Sputnik – The state-run Pemex oil company is losing 93 cents for each barrel sold, as it costs $23 to produce. In December, Mexican authorities announced that Mexico oil revenues decreased by 38 percent in the last 10 months compared to the same period in 2014.
Cronica – The winning groups from the second Round One oil tender – Pan American Energy, E & P Hydrocarbons, Fieldwood Energy and Petrobal – signed contracts for the two drilling areas awarded in the auction. Their investments are expected to trigger $2 billion in income.
El Financiero – Legally there are no barriers for a private company to supply electricity to homes and businesses in Mexico starting this year. The Energy Regulatory Commission (CRE) has already received applications from companies wishing to participate in what is known as basic supply.
Dario – A Mexico barrel of oil fell to $26.26, which represents its lowest price in more than 11 years, since Dec. 10, 2004. The price of the Mexican crude oil has plummeted 4.1 percent in the first two trading days of the year.
Financial Times – Despite being a major oil producer, Mexico has long been held back by uncompetitively high energy prices. But salvation may be at hand, in the form of imported energy, providing a major boost to the Latin American country’s manufacturing sector.
Vanguardia – Energy Secretary Pedro Joaquin Coldwell, announced that the first quarter of 2016 the results of the first power auction in which the Federal Electricity Commission plans to buy clean energy certificates will be revealed.
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.
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.
Bloomberg – Five incidents of pipeline theft a day, a rate that’s almost doubled in the last two years, isn’t fazing potential bidders seeking to produce oil from onshore fields in five Mexican states.
Power Technology – Spanish giant Gamesa has won a turnkey construction order from developers Mexico Power Group and First Reserve for La Bufa wind farm in central Mexico.
Sentido Comun – TSK Electronics and Electric won the CFE contract to develop a $51.3 million geothermal power plant in Michoacan to meet the demand for electricity in western Mexico.
WSJ – Mexico’s national oil company Petróleos Mexicanos plans to invest $23 billion in coming years to upgrade its refinery system, increasing production of clean fuels and expanding its crude-oil processing capacity.
Platts – Mexico is not willing to cut its crude production as part of any coordinated action by OPEC and non-OPEC producers, a Mexican energy ministry source said Thursday.