Abel Hibert, a close advisor of President-elect AMLO, denied a Wall Street Journal article that said López Obrador would suspend Mexico’s licensing rounds for two years. Meanwhile, Saudi Arabia cancelled Saudi Aramco’s IPO and French Total abandoned its business ventures in Iran due to the renewed US sanctions.
Ready to drill through this week’s top stories? Here’s your weekly news roundup:
Two-Year Licensing Round Suspension Denied. Abel Hibert, a close advisor of President-elect AMLO, ruled out Wall Street Journal’s article that mentioned López Obrador would suspend Mexico’s licensing rounds for two years. He considers Licensing Rounds critical to obtain the expected crude oil production.
To-be PEMEX E&P Director General presents counter-reform plan. Fluvio Ruiz aims to strengthen PEMEX by modifying several artictles of the Hydrocarbon Law published in August 2014. For a full account on these planned modifications, click here.
States Economy Impacted by IEPS Tax Collection Downturn. By reducing the Special Tax over Production and Services (IEPS) in gasoline, the Federal Government is effectively decreasing the income allocated to local governments from this tax.
COFECE Fines PEMEX MX$418 million. The Federal Commission of Economic Competition (COFECE) fined PEMEX Transformación Industrial after it delivered its petroleum products commercialization report with a one-year delay. The report is meant to corroborate non-discriminatory conditions for its clients.
Offshore Firm Linked to Odebrecht and former PEMEX Director General. Findings are attributed to an investigative journalism report by Quinto Elemento Lab. Between Dec. 2013 and March 2014, a Scotland-based virtual offshore firm, Grangemounth Trading Company, received US$3.7 million and transferred US$5 million to Zecapan SA, another offshore firm liked to Emilio Lozoya, Former CEO of PEMEX. Financial exchanges took place while PEMEX signed a contract with Odebrecht worth US$115 million and purchased from AHMSA the Agro Nitrogenados junk plant.
BP Preparing Fuel Imports Plan. In an interview with the press, General Manager Mexico of BP Downstream, Álvaro Granada, said the IOC is laying the groundwork for new storage and distribution infrastructure to start importing its own fuel.
ASEA Closes Down Usumacinta 12 Well. The natural gas producing well was suspended by the Agency due to the inadequate conditions for maintenance works. It will remain suspended until PEMEX concludes the final repairs to the facilities.
Talos Energy Weighs Midstream Options for Zama Discovery Offshore Mexico. Talos Energy’s CEO, Tim Duncan, considers appraisal works for its Zama field should begin later this year and continue through 2019.
UK Greenlits Hydraulic Fracking. Privately owned British E&P company Cuadrilla got the go-ahead from the UK government to frack one of the two wells it has already drilled in Lancashire’s Preston New Road Site. Fracking operations are scheduled to start before the end of 3Q18.
Total Abandons its Irani Operations After the Re-establishment of US Sanctions. The French IOC cancelled its US$5 billion, 20-year deal to explore the South Pars natural gas field.
Saudi Arabia Cancels Saudi Aramco’s IPO. By disbanding the board of advisers in charge of the operation and calling off international and domestic stock listings, Saudi Arabia is effectively calling off the IPO.
The Next Fracking Business: Wastewater Treatment. Shale drillers are looking to solve one of their prevalent issues: wastewater-disposal. In an effort to support this issue and make profitable returns in the process, private-equity firms have invested more than US$500 million into wastewater-disposal companies.
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