October 2, 2014
10/01/14 Wall Street Journal
In the wake of an energy overhaul that ends Mexico’s state oil monopoly, a new exploration and production company was born with the name Sierra Oil & Gas, which Chief Executive Ivan Sandrea says already has a wealth of global expertise. “We’re pretty big for a baby,” he said on Wednesday. Sierra said last month it had secured equity commitments of $525 million from U.S.-based private-equity firms Riverstone Holdings LLC and EnCap Investments, along with Mexican private-equity fund Infraestructura Institucional. Mr. Sandrea said his team has a combined 350 years of experience, and most of its members have worked in the industry in Mexico. They are currently preparing for Mexico’s first bidding round for oil and gas blocks, set for next year.
October 1, 2014
09/30/14 Wall Street Journal
Mexican officials launched a special fund on Tuesday that will capture income from oil and gas activities and distribute the money to the federal budget and a long-term savings account as part of a broad energy overhaul that will open the industry to private players. The fund will be administered by the Bank of Mexico, the country’s central bank. Finance Minister Luis Videgaray said three other funds also were created to promote the participation of local contractors in the energy industry, to bring electricity to far-flung rural areas, and to help small savers with investment opportunities that will come from Mexico’s energy reform.
September 24, 2014
09/23/14 Financial Times
Wanted: sharp new image for septuagenarian Mexican company with loyal following and the kind of brand recognition many companies would kill for. It sounds like an advertising agency’s dream. But the company in question is widely believed to be bloated, corrupt and inefficient. Its ability to maintain its market share in future is by no means guaranteed, and though it faces immediate challenges, it will not be able to deliver results overnight. The company is Pemex, the state oil producer, which is facing competition for the first time since its creation in 1938, under a landmark reform pushed through by Enrique Peña Nieto, Mexico’s president. Legislation that will open the sector to private investment was passed in August. Private oil companies, including foreign groups, are expected to start piling in next year.
September 18, 2014
MEXICO CITY – When Mexican President Enrique Peña Nieto signed into law the enabling reforms for his country’s energy sector last month, it marked the fulfillment of a campaign promise two years in the making. Although Mexico’s Congress last year agreed in principle to the reforms, the secondary laws passed last month actually define the parameters for the reshaped energy sector. Their passage is effectively the green light for private investors—both foreign and domestic—to enter the Mexican energy market. So what happens next?
August 26, 2014
08/26/14 By Trevis Team. Forbes
Union Pacific generates around 10% of its revenue from shipments to and from Mexico. We believe that with the new energy sector reform in Mexico, this number could go up driven by an increase in Union Pacific Mexico shipments of industrial products and chemicals carloads. Recently, the Mexican government passed a law that opens up Mexico’s energy sector to foreign and private domestic energy companies. Since 1938, state-owned Petróleos Mexicanos, or Pemex, has been the only company operating in Mexico that produces and refines oil. The new law is expected to bring in billions of dollars in new investment, increase competition, and increase production of oil and gas that will help lower electricity costs in Mexico.
August 26, 2014
Opening the country’s oil to foreign investors will accelerate foreign investment and generally ‘improve the lives of its people,’ says think tank.
Mexico’s energy reform will bring the country “enormous benefits” and will be a “game changer” for the nation’s role in the global economy, according to report released Monday.
August 25, 2014
08/22/14 The Wall Street Journal
Mexico’s state-owned oil company Petróleos Mexicanos said Friday that crude-oil output this year would fall to about 2.35 million barrels a day after accounting for water and other impurities coming out of its fields in increasing quantities.
Pemex, as the company is known, said crude-oil measured at the wellhead in the January-to-July period averaged about 2.47 million barrels per day, while the amount of oil obtained after removing water, segregating products and accounting for inventories was 2.34 million barrels a day.