Mexico to Award $4.9 Billion of Power Plants and Pipes

August 19, 2014

08/18/14 Bloomberg

Energy -electricity_transmission_linesComision Federal de Electricidad, Mexico’s state power company, will auction $4.9 billion in pipeline and electricity projects as the energy industry opens up to private investment for the first time since 1938.

CFE will offer contracts for four power plants, four pipelines and eight electricity transmission and distribution projects by next year, Chief Executive Officer Enrique Ochoa told reporters today in Mexico City. More than half of the investment would be for an 889-megawatt plant in northeastern Mexico and a 786-megawatt plant in western Mexico, contracts for which will be awarded in the first half of 2015.

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Will Security Problems Hamper Mexico’s Energy Boom?

August 18, 2014

08/18/14 By Nathaniel Parish Flannery. Forbes 

Energy -electricity_transmission_linesMexico has attracted attention for passing secondary laws that will end its state oil monopoly and open the country’s borders to new types of foreign investment. As Juan Montes explained in a recent article, “Under the new law, foreign and private domestic energy companies will be able to explore, produce and refine oil for the first time since Mexico nationalized its oil industry in 1938 and transformed oil into a symbol of national pride. State-owned oil giant Petróleos Mexicanos, or Pemex, was created that year, and has since been the only company allowed to exploit the country’s oil and gas resources, turning Mexico into the world’s ninth-largest oil producer.”

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Mexico’s Energy Sector Reform Worth The 76-Year Wait

August 18, 2014

08/15/14 By Gaurav Sharma. Forbes

energy- oil pumps 2Over the last decade, oil and gas supply-side analysts have noted the decline in Mexico’s hydrocarbon output with a fair degree of dismay. Ageing infrastructure, layers of red tape and alleged corruption have seen the country’s output drop from 3.6 million barrels per day (bpd) in 2004 to the current output level of just 2.5 million bpd.

Mexican market analysts’ standard response to the decline was a shrug of the shoulders accompanied by an all too familiar quip, “what do you expect – that’s Mexico.” The capacity to change things by bringing in private sector participation in general, and foreign direct investment in particular, was hamstrung by the concept of state ownership of natural resources enshrined in Mexico’s constitution since 1938.

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UT, A&M have energy expertise Mexico could tap

August 18, 2014

08/11/14 Houston Chronicle

energy -drilling_platform_in_seaAs Mexico ends its 75-year-old state monopoly and opens oil and gas production to foreign investment, the nation’s need for expertise – especially for petroleum engineers – will be great.

That’s prompted at least two Texas universities to establish relationships with universities in Mexico to train professionals and share knowledge.

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Energy Reform Series – The Expert Take

August 14, 2014

cover ER seriesOn Monday August 11, Mexican President Enrique Peña Nieto enacted the secondary legislation of the energy reform, composed of 9 new laws and amendments to 12 existing ones. With this action, a new chapter in the economic development of Mexico begins.

Read two articles about Mexico’s Energy Reform. First, a piece written by Jesús Reyes Heroles on energy reform and democracy. Second, Pedro Valenzuela and Duncan Wood assess the energy reform and its process following the enactment of the secondary legislation. Also, the Mexico Institute charts the course of the energy reform beginning in 2012, when Enrique Peña Nieto, then-Candidate for the Mexican Presidency, made the commitment to reform the energy sector by 2015.

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Mexico awards 83% of oil reserves to state firm Pemex

August 14, 2014

08/13/14 BBC News

PemexThe Mexican government has granted national oil firm Petroleos Mexicanos (Pemex) the rights to 83% of the country’s proven and probable oil reserves, as part of a broad overhaul.

But Pemex will only get 21% of possible reserves, less than it had asked for.

Those are the areas where oil has not yet been discovered and which will require a greater degree of investment and exploration to fully exploit.

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Mexico hopes to lure $50.5 billion in historic oil tender

August 14, 2014

08/13/14 Reuters

oil rigsAug 13 (Reuters) – Mexico expects to attract $50.5 billion in new private and foreign investment by 2018 as part of a historic opening of its oil sector that begins next year with a first round of contracts, the country’s top oil officials said on Wednesday.

The so-called Round One tender will offer up 169 exploration and extraction blocks, including a mix of both onshore and offshore areas, and cover a total of 28,500 square km.

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Mexico energy reform divides opinion

August 14, 2014

08/14/14 BBC News

Energy -electricity_transmission_linesFor the first time in its 76-year history, Pemex’s monopoly over the country’s energy industry has been broken as a reform signed into law this week opens up the sector to competition from foreign oil companies.

In an announcement on Wednesday by the energy ministry, an area worth around 20.6 billion barrels of oil will remain in Pemex’s hands. The remainder will be open to private exploration with Shell, ExxonMobil, BP, and Russian company Lukoil, said to be among those lining up for the auctions to begin.

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Mexico Energy Reform Built on a Shaky Foundation

August 14, 2014

energy - gas pump08/14/14,  Reforma: Sergio Aguayo – Translated by  Mexico Voices

It was born defective. The government and its minions fanned it with incense, introduced it with great fanfare, and deemed it beatified before it performed any miracle. Two thirds of the population reject it because it stinks of corruption on all sides. What’s next? Despite the avalanche of TV and radio ads and triumphalist speeches given in recent months, in late July a solid 65% of the population was still against the energy reform. This Sunday in Reforma’s “Revista R” Alejandro Moreno analyzed the survey made by the newspaper. It’s amazing that not even PRI or PAN supporters are in favor (57% of PRI and 61% of PAN reject it)!

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Schlumberger and Halliburton Can Benefit As Mexico Overhauls Its Energy Sector

August 13, 2014

08/13/14 By Trefis Team. Forbes

Oil Rig 2 by Flickr user tsuda Photo by Flickr user tsudaMexico recently passed new laws to overhaul its energy sector, allowing foreign and private companies to participate in the Mexican oil, gas and electricity industries. The move also ends a seven-decade long monopoly that Petroleos Mexicanos (Pemex), the country’s national oil company, has had over the oil and gas space and should allow the country to attract greater investment into an oil industry that has seen its production decline for close to a decade. While U.S. oilfield services firms such as Halliburtonand Schlumberger have already been doing work in Mexico for Pemex, we believe that the reforms could enhance their activity levels in the country as large international oil companies begin to participate, particularly in underserved (and lucrative) areas such as deepwater and unconventionals.

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