Last week, PEMEX’s different subsidiaries tackled monopolistic practices accusations in natural gas, disputing CRE’s established LPG rates and outlining deepwater drilling plans, while to-be Minister of Energy Rocío Nahle declared Mexico would not see any new E&P licensing rounds until 2021. Meanwhile, natural gas in the US is facing a perfect storm of increased prices and oil heavyweights are taking over the shale gas bonanza.
Ready to strike oil? Here’s your weekly news roundup:
CNH, PEMEX and Operadora de Campos DWF Sign Oil Contract for Chicontepec Field. The contract is a result of a migration procedure from the previous regulatory framework’s Integral Exploration and Production Contract (CIEP) for Chicontepec’s Miquetla field to operate under a license scheme
PEMEX Signaled to Favor Natural Gas Companies. MORENA’s senator, Cruz Pérez Cuéllar, accused PEMEX Transformación Industrial before COFECE of monopolistic practices that generated alleged losses estimated at MX$29 billion in 20 months by allowing discounts to a number of natural gas corporations.
The NOC also disputed LPG Rates. PEMEX Logística presented an amparo to contest the maximum rate levels authorized by CRE for the commercialization of LPG in its Salina Cruz, Oaxaca, Rosarito, Baja California and Reforma storage terminals. PEMEX Logística argues said rates inhibit the recovery of efficient costs and obtaining appropriate profitability levels.
In addition, PEMEX is Setting its Sights over Deepwater Field Nobilis-1. The NOC scheduled drilling operations for Nobilis-1 for Dec. 5, 2018
No E&P Licensing Rounds Until 2021. Upcoming Minister of Energy, Rocío Nahle, says the new administration will use this time to examine the expected results of the 107 licensing round contracts, awarded by CNH, considering the different delivery dates stipulated in the contracts, ranging from reaching commercial operations in 2020-26
TransCanada Halts Work on Two Pipeline Projects in Central Mexico. The Canadian company cited difficulties experienced in Hidalgo including runaway costs due to higher than expected costs in permitting procedures from various municipalities and alleged acts of extortion rooted in landowner opposition
300 Jungle Hectares Gone in Preparation for Dos Bocas Refinery. ASEA is expected to open an investigation based on the complaint filed by the Mexican Center of Environmental Law (CEMDA), denouncing the Dos Bocas refinery project is being prepared in a terrain now devoid of 300 hectares of jungle and mangroves.
Natural Gas Tackling a Perfect Storm. This winter, natural gas prices will be experiencing steady increases due to shifts in meteorological forecasts at a moment when natural gas stored in the US has reached minimum levels not seen since 2005
Oil Heavyweights Taking Over US Shale Boom. While the US Shale bonanza was spearheaded by small companies, American production is scaling up to levels big oil firms are comfortable in to outpace smaller drillers and capitalize on fracking’s full potential
Crude Oil Prices Take a 30 Percent Dive in Seven Weeks. The increase of global inventories, US’ increased crude oil production and the uncertainty over OPEC’s measures’ effectiveness to stabilize prices are the primary factors of this fall
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