Mexico witnessed the first signing of a preliminary unitization agreement in its entire oil and gas history, as it is laying the groundwork to boost crude oil and natural gas production. Meanwhile, Egypt, Venezuela and Saudi Arabia are stepping on the gas pedal to increase their respective drilling activities.
Ready to strike oil? Here’s your weekly news roundup:
Talos Energy, Sierra Oil & Gas and Premier Oil Consortium’s Licensing Round Contract Under Scrutiny. Incoming Energy Minister, Rocío Nahle, confirmed that her team started its audit of all 107 signed contracts from the licensing rounds, starting with the one responsible for the Zama discovery. The consortium won the only two E&P contracts for shallow waters in Round 1.1, raising questions over why these blocks did not remain in the hands of PEMEX.
PEMEX and Talos Energy Celebrate Preliminary Unitization Agreement. The agreement concerns PEMEX’s Round Zero allotment of Amoca-Yaxche-03, contiguous with Talos Energy’s Block 7, awarded during Round 1.1. By outlining the participation percentages to be assigned by the signatory parties, the agreement is set to maximize operative and ICT resources and establish the relevant activities to optimize seismic acquisitions and reduce operative risks. It is the first pre-unitization agreement under Mexico’s new energy model approved by the Ministry of Energy.
CNH Advises Establishing Natural Gas Production Incentives for Energy Security. The regulator’s latest report on Mexico’s natural gas sector indicates the country imports more than 80 percent of its natural gas supply from a single provider: the US. Betting on the country’s unconventional resources, fiscal incentives and creating a state-owned enterprise solely focused on non-associated gas production are a few of the lines of action recommended by Juan Carlos Zepeda, President Commissioner of CNH.
Increasing Crude Oil Production Requires US$20 Billion Per Year. Former Director General of PEMEX E&P and Director General of Petrobal, Carlos Morales, estimated that was the required amount to maintain and possibly increase Mexico’s current average production to 2 million b/d.
ASEA Trails Tamaulipas’ Coast Following Oil Spill Reports. Covering 10km, the agency collected samples accompanied with representatives of the Marine Turtle Conservation Program of Tamaulipas. Samples revealed a 97.63 percent concentration of sulfur, matching characteristics of weathered hydrocarbons.
CEPSA Launches IPO. The IOC is preparing its return to Madrid’s stock market by launching an IPO for 25 percent of its shares. The company is also keeping open a process for a private share placement. It is hoping to collect at least US$2.5 billion from its IPO.
Egypt Signs New Exploration and Drilling Agreements. The country’s Oil Minister, Tarek al Mola, signed an oil and gas exploration agreement with Shell and Petronas for a deepwater reservoir, valued at US$1 billion. The drilling agreement, valued at US$10 million, was signed with Kuwait Energy, Dover Petroleum and Rockhopper to drill four onshore wells.
Venezuela and China Sign Energy Cooperation Agreements. During President Maduro’s official visit to China, a series of strategic cooperation agreements covering several key economic sectors were signed. Among them, an agreement to increase the crude oil production of Venezuela’s Orinoco oil belt.
Saudi Aramco Poised to Invest US$133 Billion in Drilling Activities. The state-owned company has plans to increase its exploration and production activities over the next 10 years with said investment, specifically focused in natural gas. The objective is to adhere to Saudi Arabia’s Vision 2030.
ExxonMobil Joins Oil and Gas Climate Initiative. The OGCI regroups 13 of the largest IOCs to work jointly toward carbon capture and storage, methane reductions, energy efficiency and investing in R&D to develop other long-term solutions to reduce greenhouse gas emissions.
Would you like to know more about Mexico’s Oil and Gas industry? Click here!