Reuters – Mexico has approved draft auction terms for five shallow water areas containing around 355 million barrels of oil equivalent (boe) as part of its Round One tender opening up oil fields to foreign investors, the country’s energy regulator said on Friday.
Bloomberg -Mexico’s top three billionaires — Carlos Slim, Alberto Bailleres, and German Larrea — dominate the country’s telecommunications, mining and retail industries. Next up on their priority list: oil.
Sentido Comun – Fomento Economico Mexicano, or Femsa, the main producer of soft drinks and a major retail chain in Mexico, announced that it will enter directly and aggressively in the business of selling gasoline now that it has no legal impediment to doing so.
Sentido Comun – The Department of Energy published a series of measures aimed at increasing levels of security under which gas distribution companies will operate.
Oil Price – A group of 20 Senate Republicans and one Democrat is urging the US government to resume crude oil exports to Mexico, ending a four-decade ban.
Milenio – The secretary general of the Organisation for Economic Co-operation and Development (OECD), Angel Gurria, praised Mexico for reacting quickly to the fall in international oil prices. He said that Mexico might benefit from lower oil prices.
Bloomberg – A month ago, bond investors in Mexico’s rig operators were bracing for the worst as the bottom fell out of the oil market. Now they’re reaping some of the biggest gains. The turnaround comes in part as oil rebounds from an almost six-year nadir.
Sentido Comun – Gas Natural Fenosa, the Spanish energy company, said that the Energy Regulatory Commission (CRE) awarded a license to distribute natural gas in four municipalities in the state of Sinaloa, its second foray into transporting fuel in that state.
XEU – Petroleos Mexicanos and San Diego-based IEnova, together with its subsidiary Sempra LNG, have signed a memoradunm of understanding for Pemex’s participation in the LNG facility near Ensenada.
Reuters – Mexican cement-maker Cemex has created an energy division to take advantage of Mexico’s landmark energy reform and launch power projects that could provide up to 5 percent of Mexico’s electricity requirements within five years.
AP – Mexico’s state-run oil company is postponing some deep-water exploration projects in response to a steep drop in global crude prices. There also will be personnel cutbacks.
Slammed by a 70 percent increase in illegal pipeline taps in one year, Mexico’s state oil company announced Tuesday that it will no longer ship finished, usable gasoline or diesel through its network of ducts.
Analysts said it was a striking admission of Mexico’s inability to stop the fuel thefts, in which thieves drill into pipelines operated by Petroleos Mexicanos more than 10 times each day, on average.
“This is a big admission of the vulnerability of Pemex,” said George Baker, publisher of the Houston-based newsletter Mexico Energy Intelligence.
Petroleos Mexicanos, known as Pemex, said the number of illegal taps rose to 3,674 in 2014, up 70 per cent from 2013 and 137 per cent over 2012 figures. The market for illegal gasoline and diesel, in which drug cartels have been implicated, has more than doubled in the last two years.
Pemex lost an estimated $1.15 billion in fuel thefts in the first nine months of 2014, according to the latest figure available.
Shale Energy Insider – Low oil prices are likely to restrict the immediate progress in developing Mexican shale. However, there is a consensus that the country’s resources are attractive for the medium-to-long-term.
Sentido Comun – General Motors has signed a purchase agreement for wind energy with Enel Green Power, allowing it to add 34 megawatts of renewable energy to their production complexes in Mexico.
Faced with the need to cut $4.1 billion from this year’s budget because of falling oil prices, Mexican state oil company Pemex said Monday it would delay plans for refinery upgrades to maintain spending on maintaining crude and natural gas production.
Pemex also said contractors would be asked to renegotiate the terms of their current deals.
“Many of the contracts were signed at a time when market conditions were very different,” the statement said.
To soften the impact of the cuts, Pemex said its management has presented several initiatives to give the private sector a bigger role in the company’s investment projects in accordance with the terms of last year’s energy reform.
EFE – The Energy Regulatory Commission (CRE) awarded Energy Buenavista the first authorization to import electricity under the new regulatory regime. Up to 540 megawatts of electricity will come from Frontera’s combined cycle power plant in Texas.
El Economista – In the coming days, both Petroleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE) will divulge the impact the recent budget cuts will have on their operations.
By Ana Isabel Martinez / Reuters
Mexico’s Grupo Bal, the owner of the world’s largest silver producer, has launched an oil company to take advantage of the landmark opening of Mexico’s energy sector to private investment, a company spokesman said.
The company, to be called Petrobal, will be led by Carlos Morales, who resigned last year as head of exploration and production at state-run oil company Pemex.
Alberto Bailleres, one of Mexico’s richest men, owns Grupo Bal, which controls Fresnillo, the world’s largest primary silver producer. Grupo Bal also owns base metals operation Penoles, a pension fund and the Palacio de Hierro department store chain.
Bloomberg – Fermaca Enterprises plans to be the first Mexican company to build a pipeline in the United States to bring cheap natural gas from Texas to south of the border to satisfy the growing appetite for fuel.
AP – The lowest oil prices in nearly six years couldn’t have come at a worse time for Mexico, which last year opened up oil-sector investment to private companies for the first time in decades.