June closed with positive news for Mexico’s oil and gas industry, from pipelines nearing completion to high volume discoveries and CNH’s licensing round blocks as investment magnets for the country. Meanwhile, Petrobras and Ecopetrol are capitalizing on their respective oil and gas opportunities, while Saudi Aramco is sitting on 2MMb/d of idle capacity.
Ready to drill through the week’s top stories? Here’s your weekly news roundup:
Texas-Sinaloa pipeline to be launched in July. 982km of natural gas pipelines are set to connect Texas’ Waha gas hub with Mazatlán’s Topolobampo. With a capacity of 670MMcf/d and an investment of US$1.4 billion, TransCanada’s pipeline project will detonate Sinaloa’s industrial activity.
Hydrocarbons exports on the rise. Crude oil exports increased 73 percent in May 2018 compared to may 2017, totaling US$2.83 billion.
Licensing rounds contracts could unlock US$160 billion in investments. Mexico’s Energy Ministry, Pedro Joaquín Coldwell, highlighted that if all 107 contracts awarded during the different licensing rounds met with exploratory success, the country is poised to receive US$160 billion in investments and 900 thousand jobs created throughout the duration of the contracts.
Hydrocarbons volume discovered in 2017 is the highest in the last five years. As per CNH’s numbers, from 2013 to June 2018, 49 fields discovered incorporated reserves amounting to 917 billion boe of oil and 2,041Tcf of gas.
Round 3.1 contracts signed prior to Presidential election. 16 contracts representing 35 contractual areas were signed. Should the areas showcase exploratory success, estimated investments amount to US$8.6 billion throughout the 30 years validity of the contracts.
Deutsche Erdoel México becomes operator of three exploration blocks. Through a partnership with PEMEX E&P and CEPSA, the German operator won two shallow water blocks and another block in the Southeast basin through a partnership with Sapura E&P and Premier Oil during Round 3.1.
Scorching heat drives US prices upward. Natural gas stockpiles revamped by the US shale bonanza have decreased after an extended winter. Now that summer is at our doorstep, the turned on ACs are expected to impact natural gas prices with a sustained rise.
Shell announces investments in North Sea. Based on the oil and gas giant’s estimations, the Fram field encloses a production capacity of more than 41MMcfpd.
Petrobras could receive US$28 billion from offshore sale. The Brazilian SOE is looking to sell a block participation in the Santos basin, pending approval from the country’s Senate.
Ecopetrol announces commercial production in Infantas Oriente Field. Colombia’s SOE is planning to drill 20 wells before the end of 2018 and an additional 47 wells in 2019.
Saudi Aramco, with 2MMb/d of spare capacity. During a conference in New Delhi, Amin Nasser, CEO of the Saudi SOE, stated that while it is producing close to 10MMb/d, Saudi Aramco has the capacity of producing up to 12MMb/d.