PEMEX announced a crude discovery equivalent to an additional 180 million boe and is importing gasoline from South Korea while fracking is defended by CCE, CNH and the Ministry of Energy. Meanwhile, IEA’s head, Fatih Birol, is expecting a complicated 4Q18 in terms of macroeconic growth due to rising crude oil prices and the largest offshore oil rig fleet is born
Ready to strike oil? Here’s your weekly news roundup:
PEMEX Announces Sizable Discoveries of Seven Shallow Water Deposits. Carlos Treviño, Director General of PEMEX, revealed the discoveries were made in the Manik-101A and Mulach-1 wells, located in the Southeast Basins. The discoveries are estimated to integrate more than 180MMbcoe to Mexico’s 3P reserves. Javier Hinjosa, Director General of PEMEX Exploración y Producción, stated developing of the oil wells discovered will cost US$40-45 million per well. The announcement has spiked the interest of commercial banks. Meanwhile, the NOC will begin to directly imported gasoline from South Korean IOC Hyundai Oilbank in 2019.
Mexican Oil Companies to Invest in Ecuador. Avanzia and Grupo Cobra, together with Venezuelan and Ecuadorian oil companies, will invest US$1.62 billion in Ecuador after winning crude oil production contracts in the Amazon provinces close to the Colombian and Peruvian border region.
Talos Energy Looking to Partner Up with PEMEX. Talos Energy-led consortium is poised to jointly develop its Zama discovery with the NOC, which holds as much as 2 billion barrels, including up to 800 million barrels in recoverable reserves.
CCE Considers Closing the Door on Fracking is Bad News for Local Natural Gas Supply. Juan Pablo Castañón, President of the Corporate Coordination Council (CCE) says Mexico needs fracking to produce cost-effective natural gas locally as it currently imports close to 80 percent of its natural gas supply, 60 percent of which comes from the US. CNH echoed this concern, together with the Ministry of Energy, by stating that overlooking fracking is equivalent to leaving close to 50 percent of the country’s reserves unused.
Upcoming Administration Analyzing PEMEX Fibra. Abel Hibert, Chief Economic Advisor of López Obrador’s transition team, stated during the third National Pension Fund Convention that monetizing infrastructure assets through the Mexican Stock Exchange to obtain additional capital to finance other infrastructure projects is currently under consideration.
IEA warns over global economic contraction in increasing hydrocarbons. The head of the International Energy Agency, warned that Venezuela’s and Iran’s decreasing crude oil production is poised to increase crude oil prices, giving way to a global economic red zone in 4Q18.
Ensco and Rowan Merge to Create World’s Biggest Offshore Drilling Fleet. Both offshore drillers announced an all-stock merger agreement, integrating a fleet of 82 offshore rigs. The merger is expected to create US$150 million in annual cost savings.
Iran warns Saudi Arabia Cannot Replace the Persian Nation’s Crude Oil Production. Biyán Zangané, Oil Minister of Iran, warns the Kingdom of Saudia Arabia does not have the capacity to compensate the depleting crude oil production of Iran, answering to the declarations of Saudi Arabia’s Crown Prince, Mohammed Bin Salman.
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