PEMEX reported rises in both production of crude oil and exports in October. Crude oil production increased by 9.9 percent over September and exports by 15.8 percent reaching 1.902 million barrels per day and 1.342 million barrels per day respectively.
According to Carlos Murrieta Cummings, director of PEMEX Transformación Industrial, the NOC is in negotiations to open more than 2,000 gasoline franchises in the United States. The gasoline stations will primarily be directed towards the Latino market.
Mexican operator Diavaz started drilling the first onshore exploratory well to be drilled without PEMEX in Mexico. The well Barcodón-21DES, in Tamaulipas, corresponds to Area 1 licensed in Round 1.3.
The Ministry of Finance established a maximum additional royalty of 20 percent for the 29 deepwater blocks to be licensed in Round 2.4. This round will be held on Jan. 31, 2018.
US oil prices registered a two year peak as pipeline operator Transcanada announced an 85 percent reduction of flow through its Keystone pipeline due to an accident earlier in November.
Russia and OPEC are hammering out a deal to extend production cuts to the end of 2018. The current production cut deal ends in March 2018.
Rifts between Qatar and Saudi Arabia have weakened an important negotiating block in OPEC comprising the Gulf States, with OPEC’s twice yearly talks being held next Nov, 30.
US exploration and production firms Stone Energy Corp and Talos Energy LLC announced a US$2.5 billion merger. The resulting company will have an average daily production of 47,000 BOE and proven reserves of 136 million BOE.