Oil and Gas heavyweights are slowly but surely strengthening Mexico’s oil ang gas security and LPG is facing a rapidly growing theft problem. Meanwhile, OPEP’s oil production is at an all time low and Iran is fighting tooth-and-nail to preserve its crude oil exports.

 

Ready to find out more? Here’s your weekly news roundup:

 

NATIONAL

 

Italian Eni and Hokchi Energy increase Mexico’s oil reserves. Both oil companies’ work in exploration and discoveries, coupled with those of PEMEX, increased Mexico’s 2P and 3P oil reserves. According to CNH, both companies’ contribution amounted to 1.03 billion barrels and 2.6 billion barrels, respectively.

 

Puebla, Veracruz and Tlaxcala report increased LPG theft. Octavio Pérez, Executive President of AMEXGAS, stated thefts and illegal sales in the states are responsible for the increase from a 5 percent market share in the LPG market in 2016 to a 15 percent share in 2017. This represents MX$40 million in losses per month.

 

Hidrosina criticized the campaign promise to reduce gasoline prices. Paul Karam, Hidrosina’s Director General, raised concerns over manipulating the IEPS tax to decrease gasoline prices, opening the door to return to a subsidy policy and PEMEX’s monopolistic practices.

 

PEMEX is far from reaching its 2018 commitments. The SOE so far has drilled eight wells from the targeted 56 for the year, with an investment of MX$13.6 billion, representing 28 percent of its investment commitment for 2018.

 

Madero and Salina Cruz’s reactivation breathe new life into refining activity. Working at 48 percent capacity, Madero and Salina Cruz contributed to decreasing the imported share of national oil consumption from 76 percent to 73 percent, with 939,200b/d produced throughout April 2018.

 

Houston hosts PEMEX’s second Farmout Day. On the lookout for new alliances and partnerships with the private sector, PEMEX seeks to enhance production of seven onshore blocks it won during the licensing rounds, currently producing 43,000-228 million cf/d.

 

Lewis Energy starts drilling operations in Coahuila. Texas-based operator is set to launch E&P activities for unconventionals in September for the Olmos area, backed by an investment of US$800 million.

 

Grupo Topaz subsidiary Jaguar E&P invests US$110 million to comply with its investment commitments for the 11 contractual areas won during the Licensing Rounds 2.2 and 2.3. The investment is set to cover Jaguar’s activities up to 1Q19. The next phase for the next five to 10 years will be to invest US$200-300 million.

 

 

 

INTERNATIONAL

 

The US experiences its own “gasolinazo.” Gasoline prices in the US are registering a 21.24 percent rise at US$2.1815 per gallon, compared to US$1.7992 per gallon in December 2017.

 

OPEP oil production hits new low. Venezuela’s oil production freefall and interruptions in Nigeria’s production are among the primary factors. Throughout May 2018, the oil cartel produced 32 million barrels of oil, 70,000 less than in April 2018.

 

Iran threatens to leave OPEP agreement, should the US pursue its intention of placing sanctions on the Persian country’s crude oil exports. The news comes after Iran issued an ultimatum on Total to continue its development in the Pars Sur deposit, all on the same day.

 

Bolivia greenlights fracking. YPFB Corporación signed an agreement to launch exploration works for unconventional gas. Between 2018 and 2022, oil companies are estimating to invest US$3.5 billion in such activities.

 

Shell adds competitive production in Mexico ahead of time. One year prior to the appointed date, Shell will begin production in the first phase of Kaikas, an offshore development.

 

Greenpeace staged a protest during Total’s annual shareholders meeting. The environmental ONG managed to disrupt the meeting with four activists descending by ropes from the ceiling above the stage to protest at the oil company’s plans to drill in the mouth of the Amazon and French Guiana.

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