President Andrés Manuel López Obrador is close to completing his first 100 days and so far for the oil and gas industry, it has been good news. The government has stated its goals of boosting production and strengthening PEMEX but credit rating agencies are worried the policies could hurt the country’s growth.

 

Last week, S&P downgraded PEMEX’s rating, which could hurt the country’s overall rating in the future.

 

In our Interview of the Week, Mexico Oil and Gas Review caught up with Baskem IDESA, a an association of Brazil’s petrochemical giant, Braskem and Mexico’s Idesa. The Mexico Oil and Gas Review team spoke to Stefan Lepecki, CEO Development.

 

Ready to Explore? Here’s this week’s news roundup!

S&P will analyze the impact of the federal government’s policy in regards to PEMEX in the next 12-18 months. PEMEX has between US$12-14 billion annually of financial requirements to fulfill.

Citigroup’s growth expectations for Mexico are 1.4 percent for 2019 and believes there is a very low probability that Mexico’s investment levels will drop.

In Mexico, only 21.4 percent of energy students are women and after graduation, most occupy administrative positions, not technical, according to a GIZ study.

The 107 E&P contracts signed during the licensing rounds have contributed over US$3.1 billion to the federal government during 2017-2018, according to the National Center of Hydrocarbons Information (CNIH).

Reviving the Mexican Oil Giant

Vera & Asociados has won a restricted invitation for the monitoring of social and environmental impact in PEMEX oil fields.

The government’s goal is to bring PEMEX back to life, but its finances are pushing its credit rating into a risky situation. PEMEX’s crude output hit an all-time low as it produced 1.62 million barrels of crude per day in January. That was the lowest since 1990, when PEMEX’s records were first made public.

Delays in the oil and gas auctions until 2021 will result in billions of dollars in revenue losses, according to CNH. “Every year you don’t have an auction, it’s going to cost you $1 billion,” said CNH Commissioner Hector Moreira Rodriguez during an event at the Wilson Center’s Mexico Institute in Washington.

Gas prices dropped 0.03 percent in February, but magna gasoline continued to rise in the last two months.

 

 
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