June is upon us and brought with it bad news for ASEA. The agency will remain without a governing body until after the elections. Meanwhile, PEMEX is pouring in the required financing to drill 50 wells before the end of 2018 and Hidrosina inaugurated Mexico’s first PV-powered service station. International waters saw Shell’s repeated success in Brazil’s deepwater auctions, while Saudi Aramco has all hands on deck preparing for its IPO.
Ready to fuel up? Here’s your weekly news roundup:
ASEA’s reform remains in the legislative drawer. It will continue operating without a collegiate body such as the ones present within CRE and CNH, at least until the next legislature is appointed after the elections.
PEMEX commits MX$33 billion to drill 50 oil wells. The SOC is dead set on keeping its Round Zero awarded blocks and by doing so, adding 1.1 billion boe to the country’s total 3P reserves before the end of 2018.
PEMEX pipeline blows up in the municipality of Tetepango, Hidalgo. The fire that followed the explosion wounded three Civil Protection officials trying to control the outbreak. The incident was attributed to illegal siphoning.
Fullgas launches service station license business nationwide. The Mexican brand wants to expand its 100-strong service station portfolio, primarily located in the country’s southeastern region. With this license, Fullgas is aiming to add 360 service stations to its portfolio. To do so, it will invest US$70 million in the next five years.
Andeavor will build a refined products terminal in one of CFE’s storage facilities. The US-based refining, marketing and logistics company signed a long-term lease for the land with the SOE and estimates the terminal will require close to US$100 million in investments. It will be located in Rosarito, Baja California.
Shell wins three deepwater blocks in Brazil, effectively winning half of the awarded blocks in the country’s pre-salt basins and claiming the title of Brazil’s largest foreign deepwater investor.
Saudi Aramco prepares for IPO, polishes non-oil assets. The oil giant is restructuring its pension fund, aviation and hospital business lines to entice investors with streamlined operations and transparent business risk ahead of its planned IPO.
Petrobras considers abandoning daily gasoline price adjustments. The country’s 11-day trucker strike in May in protest against gasoline prices caused the exit of Petrobras’ executive president, Pedro Parente. The Brazilian NOC’s new executive directorate approved opening talks on abandoning the daily gasoline price adjustments, provided prices remain within international price brackets and Petrobras shields gasoline prices from the impact of oil import costs.
US crude oil prices hit lows unseen since April 2018. The downward trend can be partially explained by the country’s crude oil inventory increasing by 2.1 million barrels in the first week of June against an initial forecast of a 1.8-million-barrel decrease.
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