CRE is evaluating options for gas storage. During the seventh edition of the World Forum on Energy Regulation, hosted by the Mexican regulator in Cancún, Guillermo García, President Commissioner of CRE, opened the Forum by stating that the objective was to reach storage levels of 45bcf. To do so, CRE is analyzing repurposing depleted oil and gas reservoir caverns.
During the inauguration of the Mexican Petroleum Institute’s Deepwater Technology Center (CTAP) in Veracruz, President Enrique Peña Nieto stated that rolling back the Energy Reform would cost US$600 billion, amount required to revamp the country’s oil production capacity that has depleted over the last 15 years. Canceling the reform would also impact job creation by 800,000 jobs, he added.
Mexico’s oil reserves have suffered a significant drop since the early 2000s and 2017 was no exception as compared to 2016, proven reserves decreased 7.6 percent, amounting to a total of proven oil reserves of 6.46 billion boe. ENI and Hokchi Energy’s contractual areas have contributed in halting this decline’s momentum with an additional 143.4 million boe and 137.4bcf of natural gas, as reported by CNH.
Repsol reached an agreement with 13 service stations in Veracruz and Puebla to integrate the OctanFuel group, officially launching the Spanish petroleum company’s national expansion plans after opening 10 service stations in Mexico City.
During CNH’s nineteenth extraordinary session, 22 consortiums and 14 companies were confirmed as integrating the final formation for shallow waters’ Round 3.1. The opening ceremony of economic proposals was set for March 27, at 8:00am Mexico City time.
The Harbour Administration of Dos Bocas published a tender meant for the construction of an industrial terminal for load management pertaining to exploration and production activities of the hydrocarbons industry.
PEMEX Logística awarded PEMEX Transformación Industrial 19 percent of the Monclova, Nuevo Laredo and Sabinas storage terminals’ capacity, equivalent to 61,000 barrels due to the lack of offers of private companies from the Second Open Season for the use of storage infrastructure and oil products distribution in Tamaulipas and Coahuila.
The Wall Street Journal found natural gas prices’ record low highly contrasts the increase of daily average production. Despite a natural gas demand surge in the US’ snowy Houston and general snow storms, coupled with Mexico’s imports of natural gas from its northern neighbor, production levels in Texas and pipeline network extension grow too rapidly for demand to catch up. According to the report, it is likely pressure will continue on the side of natural gas producers as natural gas prices are set to remain at these levels for the foreseeable future.
US crude oil imports from Saudi Arabia reached an all-time low unprecedented since 1988.
Government-owned PetroVietnam ordered Repsol to halt its offshore project in the South China Sea, which was closing final preparations for commercial drilling, due to pressures from the Chinese government as the site is subject to disputed waters between the two Asian countries. The project’s interruption can amount to US$200 million in losses for the Spanish company and its partners in the project—PetroVietnam and Mubadala Petroleum.
The US is facing complications in sparking interest from the largest lease sale on record in the Gulf of Mexico. Of the 30 million hectares offered, private companies bid on 1 percent of the total area, for a total investment of US$124.76 million in winning bids.
Venezuelan PDVSA launched a tender to sell between 500,000 and 1 million barrels of DCO to be delivered in April.
Chinese CNPC won a 10 percent participation in the exploration and production blocks of Zakum, Umm Shaif and Nasr in Abu Dhabi, as UAE’s state-owned oil company, ADNOC sold 40 percent of its remaining participation in those specific blocks.
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