Mexico’s Pemex Adjusts Structure to Compete With Private Companies

August 21, 2014

08/20/14 The Wall Street Journal

pemex21State-owned oil company Petróleos Mexicanos said Wednesday that it is creating drilling, logistics and electricity affiliates as it restructures its operations to compete with private oil firms.

Pemex, as the company is known, said in a news release that the affiliates would provide services to “new actors in the industry,” and that it would produce electricity through cogeneration—the use of heat from industrial operations to create power—and sell it on the open market.

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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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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 Oil Output Bloated by Water Barrels, Official Says

August 13, 2014

08/13/14 Bloomberg

120px-PemexPetroleos Mexicanos, facing a 10th straight year of production declines, is including water in its oil output and may revise previously reported data, according to a company official briefed on the matter.

A record gap this year between reported output and what the state-owned company processes is partly explained by measuring systems at older fields that are unable to differentiate water-heavy oil from actual crude, the official said, asking not to be named as Pemex debates reducing figures for the past three years or more. Last month, the company cut its 2014 output forecast to 2.44 million barrels a day.

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Mexico prepares to list oil fields open to foreign bids

August 13, 2014

08/12/14 Dallas Morning News

pemex2Key details of Mexico’s overhaul of its energy industry will come into focus on Wednesday, when longtime oil monopoly Pemex learns which fields it gets to keep for future exploration.

By week’s end, the Ministry of Energy will announce areas to be opened to foreign investors in an initial round of bidding to take place early next year, Mexico’s ambassador to the U.S., Eduardo Medina Mora, said Tuesday.

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Mexico signs landmark energy law, speeds up timetable

August 12, 2014

08/11/14 Los Angeles Times

Enrique PeñaNieto 2President Enrique Peña Nieto on Monday signed into law Mexico’s landmark energy reform legislation and announced that his government could name as early as this week the first oil and gas fields that will be opened up to foreign investors.

“It is the moment to put the energy reform into action,” Peña Nieto said in an elaborate signing ceremony at the National Palace.

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