President-elect López Obrador dissipated doubts over his initial declarations over the momentary halt of the country’s licensing rounds to subsequently announce December service tenders, COFECE launches a monopolistic practice investigation in the petroleum products market and AMLO’s Chief of Staff, Alfonso Romo, discarded subsidies or government control over gasoline prices. Meanwhile, the US regained its crude oil production crown, a first since 1973, and Ecuador is preparing its 12th oil and gas licensing round.
Ready to fuel up? Here’s your weekly news roundup:
AMLO Specifies the Purpose of the Announced December Service Tenders. After meeting with oil and gas corporate executives in Tabasco, President-elect López Obrador gave more details about the purpose of the announced December service tenders a few days after his transition team announced his administration will momentarily halt new Licensing Rounds.
Tamaulipas Opens the Door to Texan Investments in Hydrocarbons and Renewable Energy. Tamaulipas’ governor, Francisco García Cabeza de Vaca, exposed the advantages of investing in wind power generation as well as conventional and unconventional hydrocarbons production before the San Antonio Chamber of Commerce’s members.
COFECE Launches Monopolistic Practices Investigation. The Federal Commission of Economic Competition (COFECE) is investigating possible monopolistic practices in the commercialization, storage and distribution of petroleum products.
AMLO’s Transition Team Prepares PEMEX’s Centralization. The NOC inherited seven subsidiaries from the country’s Energy Reform, which the upcoming administration wants to recentralize. This maneuver is expected to tackle the increasing number illegal syphoning cases PEMEX has reported throughout 2018, increase PEMEX’s refining capacity and crude oil production activity.
AMLO’s Transition Team Receives Corporate Executives from Bechtel Corporation and ICA Fluor. The convened meeting was to capitalize on both companies’ oil infrastructure experience to receive valuable insights over the details of the tender in the works for Dos Bocas’ new refinery.
AMLO’s Chief of Staff Anticipates No Changes Over Gasoline Prices. Contrasting with President-elect López Obrador’s campaign stance of adapting gasoline prices to inflation annually, Alfonso Romo declared during Mexico’s Economic Forum 2018 that the next administration will not rely on subsidies or government control. Market forces will be the ones dictating gasoline price levels.
Chevron signs long-term contract with IEnova. The contract includes storage and delivery of imported gasoline and diesel in the Topolobambo terminal of Sinaloa. This means the IOC will no longer be relying on PEMEX for its gasoline and diesel supply.
AMLO’s Refinery Rehabilitation project has a leader. José Manuel Rocha Vallejo will head the team in charge of revamping Mexico’s six operational refineries, currently operating at 40 percent of their capacity, on average.
Senator Ted Cruz Criticizes PEMEX’s Default to US Companies. Before energy industry leaders present in Houston’s American Petroleum Institute, Senator Cruz reprimanded the NOC for failing to pay drilling equipment valued at US$2.5 billion requested by PEMEX in 2014.
US Claims Back Oil Production Crown. For the first time since 1973, the US is the largest producer of crude oil worldwide, according to the preliminary estimations of the country’s Energy Department. The feat is primarily due to shale oil’s
Ecuador Prepares Licensing Round 12. It comprises eighth exploration and extraction areas in the state of Sucumbíos. The government expects US$1 billion in investments.
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