The Mexican state-owned oil company Petroleos Mexicanos, or Pemex, says it has discovered one of the most copious group of oil fields in the shallow waters of the Gulf of Mexico, its largest such discovery in five years.
The five fields, situated off the states of Campeche and Tabasco, have total proven, probable, and possible reserves that may be as high as 350 million barrels of crude oil equivalent and could produce as much as 200,000 barrels a day, Pemex CEO Emilio Lozoya told an energy conference in Guadalajara on Wednesday.
He called the find an “achievement … of great magnitude.”
Pemex said the recent finds were the company’s biggest since it discovered the huge Atatsil and Tsimin-Xux oil fields, which were discovered in 2008 and 2010, respectively.
On July 15, Mexico plans its first auction of leases for 14 shallow-water exploration blocks in the same area of the southern Gulf, an event that is expected to open a floodgate of private investment in the country’s energy sector.
“The certain prospect of 200,000 extra barrels of production is very good news for Pemex, for the industry and for our country,” Lozoya told the meeting in Guadalajara.
WSJ – A burgeoning middle class and aging population are creating greater demand for health care services beyond what Mexico’s state-run medical programs can offer, potentially opening up an opportunity for private investments.
Bloomberg – Direct foreign investment into Latin America and the Caribbean fell 16 percent last year, with investment into Mexico tumbling 49 percent, while Brazil declined 2 percent. Investment into Chile, the region’s wealthiest nation, rose 14 percent over the same period, the only major country in Latin America to see an increase.
Chinese companies are turning their backs on Mexico in a chill that could last years, spooked by the cancellation of two high-profile projects that were supposed to usher in a new era of business between the manufacturing rivals.
Mexico is desperate to get the relationship back on track after its shock scrapping of a multi-billion-dollar high-speed train contract originally awarded to a Chinese-led consortium earlier this year, a move that angered Beijing.
Seeking to wean itself off dependence on the United States and compensate for an oil slump that hammered public finances, Mexico has sought to involve China in a new Mexico City airport, a multi-billion dollar mobile wireless network and its newly opened energy sector.
But after the train debacle and the acrimonious scuttling of a Chinese retail park planned in the resort of Cancun, some firms in China, whose economy is cooling, are deeply wary of Mexico and unlikely to ramp up business with Latin America’s second largest economy any time soon.
Reuters – With regional heavyweight Brazil less of a force in global capital markets this year, Mexican companies are filling the void by luring more investment in the form of mergers and acquisitions, bond and equity offerings.
Reuters – Mexico is trying to get Chinese state-run companies involved in the construction of a new $11 billion airport as it seeks to make up for a tainted rail tender that soured relations with Beijing, a source with knowledge of the government plan said.
Palm Beach Post – BurgerFi, a fast casual restaurant headquartered in North Palm Beach, is expanding into Mexico in its first international development agreement. In a deal with EFIT, 40 restaurants are planned for Mexico City and the surrounding areas over the next five to seven years,
Sentido Comun – Atlas Financial Corporation, a financial company serving small and medium enterprises through leasing schemes, announced that it acquired 12.6 million Series A shares in its subsidiary Atlas Financial Agroservicios to increase its stake in the company to 72 percent.
Yahoo News – Mexico President Enrique Pena Nieto told British investors in London on Wednesday that his country was open for business, as he seeks to boost confidence abroad amid concerns over violence and corruption.
Sentido Comun – British alcoholic beverage giant Diageo announced various investments in Mexico, including the acquisition of the remaining interest of Don Julio Tequila, for $400 million over the next five years.
Sentido Comun – General Motors (GM) this year will invest $87 million to expand its stamping plant located within its manufacturing complex in San Luis Potosi. The expansion will increasecapacity in the production of the Aveo and Trax models.
Essential Retail – UK-based toy retailer Hamley’s will be opening a store in Mexico, the company’s first push into Latin America.In addition to the Hamley’s opening, British luxury carmakers Lotus and McLaren have unveiled plans to open showrooms in Mexico City,
Mexico received $22.6 billion in foreign direct investment last year, including $5.6 billion in the fourth quarter, far short of the record investment received in 2013, according to preliminary numbers reported by the Economy Ministry.
Foreign direct investment was lower than the $42.1 billion reported for 2013, when the amount was boosted by $13.2 billion with Anheuser-Busch InBev’s buyout of the half of brewer Grupo Modelo that it didn’t already own.
Direct foreign investment inflows of $33.9 billion last year were offset by $11.4 billion in reductions, including when foreign companies sell their investments to Mexicans, the ministry said.
The manufacturing industry received the most foreign investment last year, with $12.9 billion, followed by financial services, mining, commerce and construction.
Tech Cocktail – As the second-largest economy in Latin America, Mexico is quickly becoming a startup hub to be reckoned with. From Mexico City to Monterrey, entrepreneurial hubs are emerging with the support of the Mexican government and local organizations. Mexico is out to change its negative perception often equated to violence and show the world instead that its country that fosters entrepreneurship.
El Sol de Mexico City – President Enrique Peña Nieto announced that the Executive Council of Global Enterprises (CEEG) estimates that global companies will invest more than $11 billion in Mexico, creating 56,200 direct and indirect jobs in 2015.