On Nov. 3, 2017, Mexican president Enrique Peña Nieto announced the PEMEX’ “biggest onshore discovery in the last fifteen years.” The light-oil discovery was made in the Veracruz basin, 40 kms northeast of Cosamaloapan, Veracruz. This discovery represents 1,500 million bcoe while the field’s estimated reserves are 350 million bcoe.
According to analysts from Sanford C. Bernstein & Co. several natural gas pipelines planned for completion between 2017 and 2019 for the supply of Mexico from the United States could be delayed. Researchers from the company say that the investment budget for the 2019 companies has not been finalized.
PEMEX CEO, José Antonio González Anaya, met in London with directors of ten major international oil companies as part of the Oil & Gas Climate Change Initiative (OCGI). PEMEX is the only Latin American participating in this initiative.
BP, Glencore, Shell and Trafigura have shown interest in the commercialization of crude oil produced from the shallow water blocks licensed in Round 1. The decision by the CNH which company will have the rights to commercialization will be made on Nov. 13.
Saudi Crown Prince Mohammad bin Salman consolidated power as 10 princes were arrested last Saturday Nov. 4 in a corruption crackdown. Among those arrested was Prince Mutaib Bin Abdullah head of the Saudi National Guard. This crackdown is seen by analysts as part of a power struggle anticipating the abdication of Saudi King Salman, aged 81. This power struggle takes place against the expected IPO of Saudi NOC ARAMCO in the coming year.
US crude oil inventories fell by 2.4 billion barrels the week ending the 27th October according to the EIA’s weekly report. Oil imports also fell by 552,000 barrels a day compared to the previous week.
Venezuelan President Nicolas Maduro promised to restructure Venezuela’s debt, causing uncertainty among bondholders. He announced that a 1.1 billion payment made on Thursday on Venezuelan NOC PVDSA bonds will be the last one made before debt renegotiations begin. Russia and China have loaned US$ 60 billion to Venezuela in order to boost oil production.
Saturday Nov. 4, Russian Energy Ministry stated that Russia, Saudi Arabia, Uzbekistan and Kazakhstan were prepared to work toward reducing global oil inventories. OPEC and non-OPEC oil producers will meet toward the end of November to decide whether to continue the current oil supply-cut pact.