Last week was the bearer of bad news for the oil and gas sector. CNH’s President Commissioner, Juan Carlos Zepeda, announced its early resignation six months prior to the end of his mandate. Moreover, the country’s private sector is alarmed over alleged natural gas supply contract cancellations scheduled for January 2019. Meanwhile, the US’ WTI witnessed its worst cumulative loss streak since 2015 and GE speeds up its BHGE separation.
Ready to fuel up? Here’s your weekly news roundup:
President Commissioner of CNH Resigns. Six months prior to the end of his mandate scheduled for May 2019, Juan Carlos Zepeda resigned from his post as President Commissioner of CNH.
Private Sector Alarmed Over Alleged PEMEX Natural Gas Supply Contract Terminations. Users allegedly were informed the NOC was planning to cancel its natural gas supply contracts by Jan. 2019, claiming a nationwide natural gas shortage. PEMEX has made no comment over these allegations.
Crude Oil Trade: The Lion’s Share of Mexico’s Trade Deficit. Since 2012, crude oil imports value increased 30 percent while exports plummeted by 42 percent. In Sept. 2018, Mexico’s trade reported a negative balance of US$10.22 billion. Non-petroleum trade balance amounted to a surplus of US$6.1 billion whereas petroleum trade amounted to a deficit of US$16.32 billion.
Light Oil Import Increases Refining Activity. S&P Global Platts reported the import boosted Tula refinery’s output in the first week of November. It processed 241,000 b/d throughout the week compared to 85,000 b/d on the last week of October.
Braskem Idesa Discards Renegotiating PEMEX’s Ethane Contract. The ethane supply contract is causing the NOC multimillion-dollar losses as it has to import the ethane from the US to cater to Braskem Idesa’s petrochemical plant. The petrochemical company is awaiting the upcoming administration to be sworn in to discuss further other business opportunities.
McDermott Awarded Conceptual and Engineering Services Contract for Zama Field Development. The contract with Talos Energy stipulates McDermott will manage all phases of the engineering services process, including concept selection and follow-on pre-FEED, as well as workshare engineers and designers in Mexico City.
Mexico-US Energy Council Welcomes New Private Sphere Members. The new arrivals will be Council members for the 2018-20 period. The Council is usually made up of four government participants, two from each country, and 20 C-level executives from both countries’ private sector.
US’ WTI Cumulates Worst Loss Streak Since 2015. New York’s stock exchange registered the worse crude oil pricing levels since Nov. 16, 2017 at US$55.69/barrel, its steepest fall since Feb. 2015.
GE Hits Gas Pedal with BHGE Separation. The separation agreement includes long-term collaboration in critical rotative teams such as gas turbine technologies, BGHE access to GE Digital’s software and technologies and a series of accords related to prices and operations within BHGE Digital Solutions product line, pensions, fiscal issues and service costs between both companies.
Ecopetrol Wins Four New Exploratory Blocks in the US Coast of the Gulf of Mexico. The Colombian NOC was awarded Green Canyon’s 404. 40, 448 blocks and Emerald prospect’s 492 block after the conclusion of the GOM- Lease Sale 251 round, in which 144 blocks were up for grabs.
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