President Andrés Manuel López Obrador’s opposition to the country’s Energy Reform and his determination to position PEMEX at the center of Mexico’s energy strategy is set to result in many policy amendments. The government will continue to support the national oil company to resume their private oil ventures.
It was a good week for the natural gas sector as the government was able to reach a new deal with private gas pipeline firms. A compromise was reached from both sides after the lingering dispute regarding the fees and payments in the contracts. Resolving both issues puts Mexico on track to reduce the risk of receiving a downgrade by showing the right gesture to the world.
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PEMEX continues to struggle with production numbers, but action is taken to turn the tide.
As production dropped notably between January and July, Pemex must focus on increasing production. Especially after hearing positive news from the government regarding private sector investment, which could potentially lead to alliances that will help PEMEX explore deep water reserves. The oil giant was also granted 64 exploration assignments from SENER and is planning to invest US$401 million in Campo Koban.
AMLO’s desire to place PEMEX at the center of the country’s energy policy is leading to some notable changes in attitude. AMLO took a drastic U-turn and announced his change of heart regarding PEMEX to resume joint ventures with the private sector, and furthermore reached a deal with private gas pipeline firms, ending a lingering dispute that could have damaged the relationship Mexico has with the private sector.
58 PEMEX officers are removed for their involvement in fuel theft activities alongside Huachicoleros.
Criminal groups have focused their efforts on new municipalities to steal fuel, as 14 locations that did not feature in major incidents before have now been added to the list. This is a setback in the efforts to combat the huachicol issue, even suggesting that rooting it out in one place will just push it to emerge in another.
TechnipFMC will be split in two separate engineering supergroups, as the board approved a plan to create two independent and publicly traded companies.
Luis Vera announced his departure as director of ASEA (Agencia de Seguridad, Energía y Ambiente) after being in that position for only eight months.