With the National Development Plan scheduled to be released mid-April, the industry is anxious to finally have a clear view of what the next six years will be like. As the federal government looks for more money to inject into PEMEX and carries out public consultations, the energy sector is at a standstill with four commissioners missing at the CRE, pipeline projects halted and both auctions and rounds canceled. In the meantime, winners of previous rounds continue their search for black gold.
This week’s Interview of the Week is with Donato Santomauro, Bonatti’s Mexico Country Manager. Bonatti is an international general contractor that has participated in the construction of El Encino-Ojinaga, Tuxpan-Tula, and El Oro Mazatlan pipelines.
Ready to Start Drilling? Here is your weekly roundup!
Mexico’s Newfound Natural Gas Addiction (and deficit)
President Lopez Obrador has put natural gas pipelines back on the table for discussion, referring to the contracts as onerous. He stated that CFE has to pay eight times what was accorded for the construction of 19 pipeline projects.
The natural gas pipeline being developed by Gas Natural del Noreste in Cancun, with plans to expand to Puerto Morelos, will boost the city’s economic development, said the local president of the National Chamber of Commerce, Services and Tourism.
DEA Deutsche has closed the deal and purchased Sierra Oil & Gas. This includes six exploration blocks and the Zama discovery.
Mexico’s Rocky Road to Boost its Oil and Gas Sector
The Senate has denied all 11 of AMLO’s suggestions to take the four commissioner openings at CRE. The Senate evaluated the academic and professional qualifications of the candidates and there was a consensus that they did not meet the requirements.
COFECE announced that Veracruz’s railways lack competition as Grupo México, Ferromex and KCSM hold enough power to fix prices and not allow users to negotiate. Veracruz represents 11.1 percent of the national chemical production and 47.9 percent of the Mexican petrochemical industry.
President Lopez Obrador promises to revive the oil and gas industry in Mexico. This will be done through 20 new oil fields and by allocating enough budget to rehabilitate the existing refineries.
AMLO takes nationalist tone on energy during first 100 days in office after canceling energy auctions, halting pipeline projects, banning fracking and putting political pressure on regulators to resign.
The federal government wants to use the Budgetary Revenues Stabilization Fund to inject more funds into PEMEX. This fund’s purpose is to provide the government with extra support when it does not have enough income.