Chairman of the Board of Renaissance Oil, Ian Telfer, stated to Reuters on Wednesday, Nov. 8, that the company has plans for aggressive expansion in Mexico, potentially reaching 30 exploration blocks in the next five years.
According to industry insiders BP participated in Mexico’s 2018 oil hedge on which the government spent approximately US$1.26 billion. The Mexican government’s oil hedge is the largest in the world and is used to cover the country’s budget in case of drops in the oil price.
A tender to commercialize the Mexican production share of oil and gas under the terms of the new exploration and production contracts was declared void on Monday without bidders. The trading company would replace the commercial arm of the Mexican NOC, PEMEX Comercio International (PMI). The CNH said the tender would be reopened soon.
The number of tanker trucks stolen between January and October rose by 77% reported the National Association of Cargo Transport (CANACAR). According to the association 91 percent of thefts were of gasoline and diesel and 60.5 percent took place on the highways between Mexico City, Puebla and Veracruz.
Tension between Saudi Arabia and Iran continued to simmer as Saudi ally Bahrain accused Iran of sabotaging the Saudi Arabia-Bahrain oil pipeline on Saturday, Nov. 11. Saudi Arabia said it would step up security at its petroleum facilities in response. Iran denied responsibility for the pipeline fire.
Oil prices rose by 1 percent due to supply cuts and political tensions in Saudi Arabia surrounding the succession from King Salman to Crown Prince Mohammed bin Salman.
China’s NOC Sinopec signed a US$43 billion deal to construct a gas pipeline in Alaska. The pipeline will transport natural gas from north to south-central Alaska over 1,200 kilometers, and will provide 20 million tons of LNG for exports. It is expected to start operations between 2024 and 2025.
United States crude inventories showed a surprise rise during the week to Nov. 3 according to the EIA, reaching 2.2 million barrels per week. Analysts had expected a decrease of 2.9 million barrels.