Last week brought good news to Mexico’s LNG business as IEnova signed a preliminary agreement with Mitsui, Total and Tokyo Gas to export LNG to global markets. Meanwhile, CFE and PEMEX are called to become the main players of Mexico’s upcoming carbon market and refining and fracking are boosting the global oil and gas industry.
Ready to drill through this week’s top stories? Here is your weekly news roundup:
US-Based McDermott Shows Interest in Dos Bocas Refinery. Alfredo Carvallo, Director General of McDermott Mexico, considers his company has positioned itself as a key ally of PEMEX. After its Abkatún-2 Platform successfully set sail to the Bay of Campeche, McDermott is now looking to contribute to President-elect’s new refinery project.
IEnova Signs Preliminary Agreements with Mitsui Power Americas, Total and Tokyo Gas for LNG Export Project. The three heads of agreements are the first of their kind on Mexico’s Pacific Coast. The project’s ECA LNH Phase 1 consists of a single-train liquefaction facility, expected to produce approximately 2.4MT p/a of LNG for export to global markets.
Talos Energy Planning Zama-2 Drilling Operations. The company’s appraisal drilling program includes three new wells scheduled to be completed by 2H19.
PEMEX’s Mexican Stock Exchange Entry Could Take Up to Five Years. To unlock the capacity to be quoted in the Mexican Stock Exchange, PEMEX must first adjust its legal framework, place capital in exchange markets, be free of any form of budgetary control, develop a fiscal regime that ensures the NOC’s financial viability and secure the financial health of the subsidiaries wishing to access the stock exchange.
CFE and PEMEX Poised to Become Carbon Market Heavyweights. Mexico is laying the groundwork for an operational carbon market. The pilot project is scheduled to be launched by 2019 and expected to become fully operational by 2022, including a carbon trading system.
Fuel Storage Business Could Attract US$2.5 Billion in Investments. Carlos Gutiérrez, Business Development Vice President of Tarsco, a TF Warren Company subsidiary, estimated Mexico could attract US$2.5 billion in investments for storage tanks and facilities by 2021.
Eni and Lukoil Sign Shallow-Water Farmout Agreement for Round 2.1 Southeast Basin Areas. As per the agreement, Eni will transfer a 20 percent stake in the Production Sharing Contracts (PSC) in area 10 and area 14, and will receive a 40 percent stake in Lukoil’s PSC for Area 12. The agreement was signed in light of the close proximity of said areas.
Refining is the New Oil Profit Driver. The exponential growth of North American oil output has driven down crude prices in the region, setting the stage for an announced boom for companies involved in refining activities to turn crude into gasoline and diesel, which also relieves pipeline bottlenecks.
Ecopetrol Begins Commercial Production in REX-NE Field. Located near the municipalities of Arauca and Arauquita and operated by US-based Occidental Petroleum, REX-NE produces 2,000 b/d of high quality
Fracking Could Improve Colombia’s Finances. The Colombian Petroleum Association (ACP) published a study that found fracking could inject US$500 million per year to the country’s finances and create 5,000 jobs.
North Sea Reserves to Last 20 More Years. The UK’s Oil and Gas Authority (OGA) estimates recoverable resources in that area range between 10-20 billion bcoe.
Colorado Rejects E&P Regulation. Proposal 112 aims at forbidding operators to drill wells less than 760 meters from occupied buildings, water sources and vulnerable areas was rejected as it only obtained 43 percent of favorable votes.
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