Tesoro fuel transport via Pemex lines in Mexico could begin in September

7/19/2017 Reuters

gas pipeline and gaugeU.S. refiner Tesoro Corp could begin transporting gasoline and diesel through the pipeline network owned by Mexico’s national oil company Pemex in September, an executive with the Mexican firm said on Wednesday.

On Tuesday, Tesoro signed three-year contracts with Pemex to use surplus capacity on Pemex pipelines and storage facilities in the northern border states of Baja California and Sonora, capacity won by the U.S. refiner at auction in May.

“Tesoro has to notify Pemex at least 30 days before the arrival of its first cargo, and so this implies that by the beginning of September we would expect to receive the first cargo,” said Ignacio Aguilar, director of Pemex Logistics.

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Next Mexico deepwater oil tender may draw from three Gulf basins

07/18/2017 Reuters

oil wellMEXICO CITY (Reuters) – Mexico will announce later this week the bid terms and blocks up for grabs in its next deepwater oil tender, which may include the first areas from the Cordilleras Mexicanas basin, a senior official said on Monday.

The Cordilleras Mexicanas deepwater basin is home to national oil company Pemex’s Lakach natural gas project and located east of the Gulf Coast port of Veracruz.

Cordilleras Mexicanas is viewed by the oil and gas industry as a major source of untapped potential.

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Mexico Delays Next Oil Auction to Let Huge New Find Sink In

7/17/2017 Bloomberg

Oil Rig 2 by Flickr user tsuda Photo by Flickr user tsudaMexico will delay its next offshore oilfield auctions by a month, giving international bidders more time to evaluate recent major crude discoveries that highlight the potential value of the assets.

A new billion-barrel find announced last week “confirms that the Mexican side of the Gulf of Mexico is very prolific,” said Juan Carlos Zepeda, Mexico’s chief oil regulator in an interview Friday. “International and national interest is awakening.”

July 12 marked perhaps the single most successful day for the Mexico oil industry since the government ended Petroleos Mexicanos’s government-owned production monopoly in 2014. Premier Oil Plc, Sierra Oil & Gas and Talos Energy LLC reported a reservoir with an estimated 1.4 billion to 2 billion barrels of oil in the southern Gulf of Mexico.

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Mexican oil regulator approves force majeure for Renaissance field

07/13/2017 Reuters

oil wellMEXICO CITY, July 13 (Reuters) – Mexico’s oil regulator approved on Thursday a force majeure request from Canada’s Renaissance Oil Corp that will allow the firm to suspend operations at its onshore Ponton area while a dispute over environmental damages at the site plays out.

Renaissance has claimed that environmental damages that pre-date its operations at Ponton have impeded its development plans.

Renaissance won development rights for the Ponton block at auction last year.

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Energy Secretary Perry says U.S., Mexico prosperity inextricably tied

7/13/2017 Reuters

rick perryMEXICO CITY (Reuters) – Promising to promote cross-border electricity trade and investment, U.S. Energy Secretary Rick Perry said on Thursday that “Mexico’s prosperity is inextricably intertwined with our prosperity.”

Standing alongside his Mexican counterpart Pedro Joaquin Coldwell, Perry said it was a top priority to ensure a North American energy strategy, develop untapped resources and diversify energy supplies.

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Demand at Mexico onshore oil and gas auction spurs output hopes

7/13/2017 Reuters

energy- oil pumps 2MEXICO CITY, July 13 (Reuters) – Mexico auctioned 21 of 24 onshore oil and gas blocks on offer on Wednesday to investors from North America and Asia including tycoon Carlos Slim and Mexican newcomer Jaguar, anticipating a substantial boost for natural gas output.

Monterrey-based Jaguar Exploracion y Produccion de Hidrocarburos took a stake in over half the areas awarded, which the oil industry regulator said would eventually yield around $2 billion in investments over the 30-year lifespan of the contracts.

A tie-up of Canada’s Sun God Energia and Jaguar won six out of 10 areas available in the first of two tenders on Wednesday, the sixth and seventh auctions since a 2013-14 energy reform.

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Oil Discoveries Suggest Mexico’s Bet to Open Energy Sector Is Paying Off

 

7/12/2017 The New York Times

oil wellWhen Mexico gambled on ending decades of state control of its energy industry, officials said they hoped the move would promote investment and give the country access to technical expertise. That wager now appears to be paying off.

The government began auctioning off rights two years ago to drill in parts of the Gulf of Mexico. On Tuesday, an international consortium of energy companies said they had discovered a large oil field, and another firm said it had discovered more oil than expected in a separate area.

The overhaul of the Mexican oil and gas sector in recent years eventually ended the state energy company’s seven-decade domestic monopoly on exploration and production. The aim was to arrest years of declining oil output, blamed on a slow-moving public sector that lacked the technology to exploit opportunities in deep-sea drilling, or shale oil and gas.

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