Mexico oil contracts set to be delayed: official

July 2, 2014

7/1/14 Reuters

energy - oil pumpsThe first big set of contracts for oil and gas development in Mexico are likely to be delayed a few months, an energy ministry official said on Tuesday, after disagreements in Congress over detailed legislation to underpin them.

Congress is currently discussing so-called secondary laws, including some new rules and amendments to existing ones, needed to set in motion a landmark energy reform passed in December to open up the oil and gas industry to private capital.

Read more…

 


Crime-ridden state poses acid test for Mexican oil reform

June 26, 2014

06/25/14 Reuters

TampicoDuring Mexico’s first oil boom, Tampico was such a magnet for foreign capital that it became the biggest oil-exporting port in the Americas and home to grandiose architecture that inspired comparisons to Venice and New Orleans.

A century on, Tampico is the country’s kidnap capital, racked by fear, murder and extortion that threaten to choke off its bid to make a comeback as Mexico, the world’s No. 10 crude oil producer, opens up its oil and gas industry.

Read more…

 


Mexico’s Pemex prepares to sell 9 pct Repsol stake

June 3, 2014

Reuters, 06/03/14

energy - oil barrelsMexican state-run oil company Pemex has hired Credit Agricole to sell its stake of just over 9 percent in Spanish oil major Repsol , Spanish online newspaper El Confidencial reported on Monday, citing financial sources.

Pemex, a long-time Repsol shareholder, has had an increasingly fractious relationship with the Spanish group.

It has publicly locked horns with Repsol Chairman Antonio Brufau over how he handled negotiations after Argentina’s 2012 seizure of the company’s YPF business, which ended in a $5 billion settlement this year.

Read more…


Canada, Mexico move to align energy development as U.S. gets tough on fossil fuels

June 3, 2014

Financial Post, 06/03/14

Oil barrelsWhile the United States takes an aggressive stand against fossil fuels, its neighbours to the south and north are working together to boost oil and gas production.

A high-level delegation from Mexico was in Calgary Monday to invite Canadian companies to take advantage of its sweeping energy reforms.

Endowed with massive oil and gas resources, the two countries have made their development central to their economies, while taking the view that growth and environmental protection can move hand-in-hand, not at each other’s expense.

Read more…


Iran Courts Mexico As Energy Partner And Talks Better Relations With U.S. At Davos

January 24, 2014

Fox News Latino, 01/24/2014 

oil rigs

Iranian President Hassan Rouhani has made a concerted effort to reach out to Western powers during his trip the World Economic Forum this week, highlighting the Islamic Republic’s need for greater energy ties with Latin America – even broaching the topic of alleviating the country’s tense relations with the United States. The main focus of Rouhani’s trip to Davos was to woo foreign investors to Iran, which has a market of around 76 million people and some of the largest gas and oil reserves in the world.Earlier in the week the chief of the Iran-Mexico Parliamentary Friendship Group met with the head of the Mexican Senate’s Foreign Relations Committee, Gabriela Cuevas Barron, in Tehran to discuss the expansion of energy ties between the two nations and in other parts of Latin America. For its part, Mexico appears open to the idea of growing its relationship with Iran, despite the country’s poor relations with Mexico’s closest ally, the U.S.

Read more….


Energy Reform in Mexico Seen Extending Rally for Ienova

January 23, 2014

Energy -electricity_transmission_linesBloomberg, 01/23/2014

Infraestructura Energetica Nova (IENOVA*) SAB, the Mexican unit of Sempra Energy (SRE), is being forecast by analysts as a winner because of energy legislation that helps it extend last year’s growth and a 53 percent stock gain.

Ienova is expected to be an “early beneficiary” of the energy law enacted by Mexico’s President Enrique Pena Nieto last month that will allow foreign companies to produce crude in Mexico for the first time since 1938, Credit Suisse analysts led by Vanessa Quiroga said in a Dec. 16 note to clients. Opportunities to enter oil and natural gas transportation and storage as well as electricity transmission and distribution will probably keep driving Ienova shares, according to Curt Launer, an analyst at Deutsche Bank AG. He rates the shares a buy with a target price of 67 pesos.

The second part of Mexico’s energy law will be debated in congress next month. Secondary legislation will determine legal specifics for contracts of foreign oil companies entering Mexico such as Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX)

“Energy reform brings in new capital and new drilling and makes Mexico able to grow its own natural gas production,” Launer said in a Jan. 21 phone interview from New York. “Ienova is very well positioned to be the natural gas processor, to be the liquids processor, and the joint venture they already have with Pemex looks like it would be a big winner in any of those circumstances.”

Read more…


Second phase critical in Mexico’s energy reforms, officials say

January 17, 2014

Energy -electricity_transmission_linesOil and Gas Journal, 01/17/2014

Mexico moved quickly once politicians there decided to adopt energy sector reforms, but the process’s second phase, which begins Feb. 1 and should be completed in 2 years, could be critical, an official of national oil companyPetroleos Mexicanos (Pemex) said.

“The reform which was approved was much more liberal than what President Enrique Pena Nieto proposed last summer,” Fluvio C. Ruiz Alercon, an independent director at Pemex, said in remarks during a Jan. 16 discussion at the Brookings Institution. “It was quite fast-tracked. There are deadlines now for Congress to legislate the second law, and some of the terms might change.”

The reforms’ main provisions, which will let the country’s oil and gas and electric companies work with the private sector for the first time since they were nationalized in 1938, probably won’t change much, he indicated.

Read more…


Exxon to Chevron Face Two-Year Wait in Mexico Oil Opening

January 16, 2014

energy - oil barrelsBloomberg, 01/15/2014

Oil companies from Exxon Mobil Corp. (XOM) to Chevron Corp. (CVX) will have to wait another two years before investing an estimated $20 billion in Mexico’s recently opened oil and gas industry.

Foreign crude producers will be allowed to bid on fields for exploration and begin developing infrastructure and operations as soon as late next year, Deputy Energy Minister Enrique Ochoa said in an interview at the ministry in Mexico City. Prior to granting the operating licenses, the legal framework has to be determined and state oil producer Petroleos Mexicanos must select the fields it plans to continue to develop, he said.

Read more…


Asia Faces Competition in Mexico’s Energy Sector

December 16, 2013

The Wall Street Journal, 12/16/2013

Oil barrelsAsian energy groups are looking at opportunities in Mexico following a decision to break Petróleos Mexicanos’s oil and gas monopoly, but they could face tough competition from Western rivals for the right to exploit the country’s huge and lightly developed reserves.

Mexico’s relatively stable political environment and geographic proximity to the U.S. could attract investors from there, including companies that have been selling stakes in Asian and African energy projects to focus on exploiting shale gas and oil opportunities nearer to home. Attractive Mexico projects could also interest European companies such as Spain’s Repsol, which is 9.3% owned by Pemex, and others already active in the country.

Read more…


North America to Drown in Oil as Mexico Ends Monopoly

December 16, 2013

Bloomberg, 12/16/2013

factoryThe flood of North American crude oil is set to become a deluge as Mexico dismantles a 75-year-old barrier to foreign investment in its oilfields. Plagued by almost a decade of slumping output that has degraded Mexico’s take from a $100-a-barrel oil market, President Enrique Pena Nieto is seeking an end to the state monopoly over one of the biggest crude resources in the Western Hemisphere. The doubling in Mexican oil output that Citigroup Inc. said may result from inviting international explorers to drill would be equivalent to adding another Nigeria to world supply, or about 2.5 million barrels a day.

That boom would augment a supply surge from U.S. and Canadian wells that Exxon Mobil Corp. predicts will vault North American production ahead of every OPEC member except Saudi Arabia within two years. With U.S. refineries already choking on more oil than they can process, producers from Exxon to ConocoPhillips are clamoring for repeal of the export restrictions that have outlawed most overseas sales of American crude for four decades.

Read more…


Follow

Get every new post delivered to your Inbox.

Join 9,840 other followers