Mexico rushes to add heavy oil auction to 2018 calendar: official

03/07/2018 Reuters

energy - oil_rigMexico wants to squeeze in a fifth oil auction this year, racing to put together a new package of shallow water heavy crude blocks for bidders before the current administration leaves office, the deputy energy secretary told Reuters on Wednesday.

The move to add the heavy oilfields to the existing auction calendar is part of the effort to reinforce an ambitious energy reform by the government of President Enrique Pena Nieto. The bidding rounds are designed to bring new investment to the sector and reverse the country’s declining oil production.

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Mexico Energy Reform Slowdown Would Be ‘A Shame,’ Pemex CEO Says

03/08/2018 Bloomberg

Energy -electricity_transmission_linesMexico’s 2013 decision to end the government monopoly on energy has resulted in billions in investment and the arrival of dozens of international oil companies.

Carlos Trevino, Petroleos Mexicanos’s new chief executive officer, thinks it would be unfortunate for that to be interrupted by the next administration.
The top concern of Trevino, who took over at Pemex in November, is that Mexico will elect a president in July that will “slow down the energy reform pace,” he said in an interview with Bloomberg Television at the CERAWeek by IHS Markit event in Houston.

Mexican oil shake-up likely if frontrunner wins presidency, says adviser

02/22/2018 Reuters

energy - oil barrelsMexico’s presidential frontrunner is not opposed to foreign investment in the country’s oil, his top energy adviser said, but his government would make dramatic changes to energy strategy, including a new focus on refining rather than crude exports.

In perhaps the most significant change envisioned by Andres Manuel Lopez Obrador, the favorite to win the July 1 election, Mexico would seek to end decades of exporting crude in three years, a lawmaker who Lopez Obrador has tapped to be his future energy minister said in an interview.

Instead, Mexico should turn its focus to value-added fuels, processing crude domestically to produce more gasoline and diesel at refineries owned by state oil company Pemex [PEMX.UL], Rocio Nahle told Reuters late on Wednesday.

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Mexico’s Obrador Backs Private Oil Contracts, Top Adviser Says

02/20/2018 Bloomberg

Mexican politician Andres Manuel Lopez Obrador,  leader of the National Regeneration Movement (MORENA) gestures as he addresses the audience during a meeting at Plaza Zaragoza in Monterrey, Mexico
Mexican politician Andres Manuel Lopez Obrador, leader of the National Regeneration Movement (MORENA) gestures as he addresses the audience during a meeting at Plaza Zaragoza in Monterrey, Mexico February 25, 2017. REUTERS/Daniel Becerril

Two years after vowing to cancel them if elected, Mexico’s leftist presidential candidate Andres Manuel Lopez Obrador appears to be having a change of heart about the oil industry reforms of 2013 that opened the country’s energy sector to private investment.

The runner-up in both the 2006 and 2012 elections, Lopez Obrador, 64, has reviewed most of the oil tenders awarded to private drillers and found them to be beneficial for Mexico, his top business adviser, Alfonso Romo, said in an interview.
Amlo, as the current front-runner is known, found the auctions to be well-executed and transparent, Romo said at his Mexico City headquarters of Vector, the brokerage firm he owns. Romo added that not a single company would be nationalized if the candidate wins the election July 1.

Will Mexico’s Record-Breaking Solar Prices Pencil Out?

02/08/2018 Greentech Media

Nellis_AFB_Solar_panelsTwo years after a major energy reform effort, Mexico’s auctions are bringing in the lowest solar prices in the world. But getting those projects financed and built will still be a challenge.

Below, we answer the most pressing questions about Mexico’s solar prospects.

GTM is headed to Mexico City next week to discuss how the country can ensure sustainable and healthy solar growth. Our Solar Summit Mexico will address the status of market reform, the economics of record-low bids, financing challenges for big and small projects, currency risk, and the future policy.

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Problems in the pipeline for Sempra’s subsidiary in Mexico

02/07/2018 San Diego Union-Tribune

pipelineAn indigenous group in a small town in Mexico has disrupted a pipeline project operated by a subsidiary of San Diego-based Sempra Energy by taking a chunk out of a natural gas line.

The disruption is one of a number of protests that have caused delays to energy projects in the country.

Four years ago, Mexican political leaders passed energy reform measures in an effort to dramatically improve the country’s power system. Only 7 percent of households in Mexico have access to natural gas.

Mexico will elect a new president in July and the front-runner has been a sharp critic of energy reform.

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NAFTA Talks Called Opportunity to ‘Lock In’ Mexican Energy Reforms, U.S. Gas Trade

09/11/2017 Natural Gas Intel

The North American Free Trade Agreement (NAFTA) renegotiations are an opportunity to update the 1994 treaty so that it reflects changes in Mexico’s oil and natural gas sector and deepened ties to Canada and U.S. energy markets, according to analysts.

“North American energy markets have changed, and there are the new reforms in Mexico,” BDO Mexico’s Rita Mireya Valdivia Hernandez, a partner in the tax practice, told NGI.  “We need to adapt or modify NAFTA so that it is aligned with what North America is today.”

Talks to hammer out the details of a new NAFTA began in mid-August with the first of seven negotiating rounds scheduled through December. Delegates from the United States, Mexico and Canada met again in early September, while the third round is scheduled for Sept. 23-27.

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