November 12, 2014
11/12/14 Financial Times
How much of a risk are Mexican drug lords and the country’s volatile security situation for the landmark energy reform? The head of one company that has a services contract with Mexican state giant Pemex smiles ruefully. At its worst point – some three to four years ago – a full 40 per cent of the acreage the company is working on was a no-go area, and that was despite some of the processes being automated, says the executive, who asked not to be named. Things have improved somewhat, but it is all relative: the proportion of the area his company is working on that can only be visited with the army, in helicopters, has shrunk to 20 per cent. “Security will be a problem,” says the executive, highlighting the elephant in the room when it comes to the industry’s otherwise rapturous reception of Mexico’s energy reform.
October 21, 2014
10/20/14 Wall Street Journal
Mexican conglomerate Alfa SAB said Monday it plans to issue new stock to raise capital as it seeks to take advantage of opportunities opened up for the private sector under Mexico’s new energy laws. Alfa, based in Monterrey, said in a news release that the proposal will be submitted to a shareholder vote on Nov. 4. “We intend to capitalize on opportunities created by Mexico’s energy reform and leverage our experience in shale gas, conventional exploration and production, and power generation and commercialization,” Alfa said.
October 20, 2014
Pacific Rubiales Energy Corp. (PREC) signed an agreement with Petroleos Mexicanos to study oil and natural gas ventures as Mexico opens its energy sector to private investment for the first time in 76 years. The Bogota- and Toronto-listed company entered into a three-year arrangement with state-owned Pemex to analyze potential projects including deep-water and onshore heavy oil ventures, Pacific Rubiales said today in a statement. The shares fell 1.7 percent to 29,200 pesos at the close of trading in Bogota after earlier surging as much as 7.9 percent. “We expect Mexico will be a significant driver of future growth for Pacific Rubiales,” Chief Executive Officer Ronald Pantin said in the statement.
October 16, 2014
Atco Ltd. (ACO/X) is looking for partners in Mexico as it positions itself to tap the $5 billion in pipeline and power projects to be offered as part of the country’s energy industry opening. The Calgary-based company has been in talks with as many as eight prospective partners as state-owned Comision Federal de Electricidad prepares to auction projects through 2015, James Delano, who heads Mexican operations, said in an interview yesterday. “We didn’t come here to work alone,” Delano said at his Mexico City office after Atco agreed to build a $50 million pipeline in its first venture in the country. “It’s important for us to work with someone who knows the country well.”
September 24, 2014
Mexican President Enrique Peña Nieto speaks about the country’s telecommunications industry, energy assets and economic policies. Peña Nieto, speaking with Bloomberg’s Erik Schatzker, also discusses Mexico’s crime issues, the legalization of marijuana in some U.S. states and immigration (This report is in English and Spanish).
September 5, 2014
09/03/14 New York Times
Gov. Chris Christie of New Jersey offered a prescription for what he called a “North American energy renaissance” in an expansive speech here, calling for an end to Washington’s 40-year ban on crude oil exports, faster approval of natural gas pipelines between the United States and Mexico, and construction of the Keystone XL pipeline from Canada to the Gulf Coast. On the opening day of Mr. Christie’s trip to Mexico, a rare journey abroad as he considers a run for the presidency, he abandoned his trademark swagger for a data-filled, policy-rich and humility-heavy approach.
August 11, 2014
08/06/14 Dallas Morning News
Mexico’s plan to radically expand its energy sector passed its final legislative hurdle Wednesday, leaving behind 76 years of state monopoly for an uncertain future driven by competition.
The Mexican Senate voted 90-27 to pass the so-called secondary rules outlining the framework under which foreign companies will drill for oil and natural gas in Mexico. A cornerstone of President Enrique Peña Nieto’s ambitious economic overhaul, the law is expected to open the door to what some believe could be more than $1 trillion in investment and create a new energy paradigm for North America.