Shells makes a new discovery in the GoM, Hokchi Energy sets the bar high for private operators and Jaguar E&P and Vista Oil & Gas sign the first private farmout in Mexico’s history. Meanwhile, PEMEX snaps out from a hefty fine and CNH takes another step in raising the interest in IOR and EOR practices for Mexico-based operators.
Eager to see how the industry is going? Continue reading on the most relevant O&G below
The Mexican crude price scratches the US$70 benchmark in its highest value since 2014, according to PEMEX.
The energy industry has provided revenue for MX$2 billion in the stock exchange since 2019. 60 percent of this revenue has come from PEMEX and CFE alone.
CNH approves the guidelines to the use of IOR and EOR practices by operators based in Mexico. This technique is expected to deduce investments coming from these activities by 100 percent.
A judiciary order spares PEMEX from a MX$8.5 million fine for failing to meet the fuel quality standards required by CRE. The penalty was determined after CRE carried a supervisory visit to PEMEX Logistics’ storage and distribution facilities in Hermosillo, Nogales, Guaymas, Mexicali, Rosarito, Cadereyta, Santa Catarina and Lazaro Cardenas.
Coming from the Private Sector
Jaguar E&P and Vista Oil & Gas materialize the first ever private farmout in Mexico. This contract entails the allocation of 50 percent of onshore fields in Tabasco and Veracruz for the amount of US$37.5 million.
Shell makes a new deepwater discovery in the Norphlet play off the Gulf of Mexico. This the sixth discovery done by the Anglo-Dutch IOC and it has been determined that the reservoir contains 244 net meters of crude.
Hokchi Energy expects production on its development fields to kick off in 2020, which could reach 30 thousand b/d and 13 mmcf of gas per day by 2021. The company made the announcement a week after CNH gave green light on its development plan.
ExxonMobil announces fuel transportation plans for two storage and distribution terminals in the states of Hidalgo and Nuevo Leon. The American giant plans on distributing fuels to its brand-new service stations across six states in Mexico, part of its consolidation plan in the country that has already prompted a 35 per cent increase in sales.
Voices from the Electoral Process
Representatives from the presidential platforms of Ricardo Anaya and Jose Antonio Meade presented their energy proposals during Foro MIREC. Anaya’s representative proposed a transition into renewables and the installation of 6 million solar panels across the country. Meade’s representative noted four guidelines for the candidate’s energy proposal: energy security and diversity, strengthening companies in the industry, sustainability and energy efficiency.
Andres Manuel Lopez Obrador’s potential Minister of Energy if elected president and senator to MORENA, Rocio Nahle, proposes an 80 percent local content clause for oil and gas contracts. The current local content requirement is 35 percent for onshore fields and 3 percent for deepwater contracts.
The Peruvian government cancels five E&P contracts for Tullow Oil in the midst of irregularities noted by the national congress, which include lack of transparency in the licensing process and failing to meet the environmental impact evaluation by local authorities. These contracts projected an investment of US$200 million.
The UK Oil and Gas Authority awarded 123 licenses over 229 blocks on the 30th offshore licensing round for North Sea reservoirs. These move is expected to revamp the country’s hydrocarbons industry and unlock developments in the country’s offshore fields.
US State Secretary Mike Pompeo announced that his country prepares economic sanctions against Venezuela, which could potentially lead to an embargo. Previously, Donald Trump ordered the prohibition of trading on Venezuelan debt bonds, included those bond belonging to PDVSA.
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