Mexico can keep supporting Pemex, finance minister says


Source: Reuters

MEXICO CITY, Sept 2 (Reuters) – Mexico’s finance minister Rogelio Ramirez de la O said on Thursday that the government is in a position to continue supporting state oil firm Petroleos Mexicanos (Pemex).

Ramirez de la O, who recently took over as finance minister, said at an event organized by Moody’s Investors Service that he expects a closer relationship between Pemex and the finance ministry.


Oil Rebounds On Mexico Production Outage



Crude prices recovered somewhat from last week’s freefall, boosted by improving signals coming out of East Asia (China reporting no locally transmitted infections) as well as the Ku-Maloob-Zaap platform seeing a major supply disruption in offshore Mexico. ICE Brent quotes swung back above the $70 per barrel mark, whilst WTI futures trended around $67.5 per barrel, further extending the widening Brent-WTI spread.

A fire on a PEMEX-operated offshore oil platform connected to the Ku-Maloob-Zaap complex (40% of Mexico’s crude output) killed at least 5 people, forcing the Mexican NOC to decrease output as the platform ran out of natural gas for reinjection.


Five killed in Mexico’s oil platform fire, hammering Mexico output


Source: Reuters

MEXICO CITY, Aug 23 (Reuters) – Five workers were killed and six injured in Sunday’s fire on an offshore platform in the southern Gulf of Mexico operated by Petroleos Mexicanos (Pemex) that cut about a quarter of Mexico’s oil production, the company said on Monday.

The fire broke out as crews were performing maintenance on the platform, and a search for missing workers continues, Pemex Chief Executive Octavio Romero told a news conference.


Energy reform fears trip up Mexico’s peso


Source: Reuters

July 13 (Reuters) – Mexico’s peso lost 1% on Tuesday on concerns over more government interference in the energy sector, while most other Latin American currencies fell as rising U.S. inflation raised fears of monetary policy tightening by the Federal Reserve.

Mexican President Andres Manuel Lopez Obrador said he plans to send a constitutional reform to Congress, widely opposed by independent power firms and investors on grounds that it would hurt competition.


Lukoil buys Fieldwood out of Mexico offshore project


Source: Upstream

Russian oil producer Lukoil has agreed to pay $435 million and additional unspecified incurred development costs to acquire a 50% operating stake in two Mexican shallow-water blocks from US independent Fieldwood Energy.

The blocks are part of the Area 4 project in the Gulf of Mexico and host the Ichalkil and Pokoch fields.


The unknown winners of Mexico’s energy reform


Source: El País

It was a perfect opportunity. When Mexico opened its market to allow private companies to produce and sell energy for the first time in decades, two US executives suddenly found themselves in a privileged position. Mexico would be buying significant amounts of natural gas from its northern neighbor and the person in charge of negotiating the contracts was someone they knew well: an ex-colleague from more than 15 years earlier, with whom they’d worked with in another recently liberalized market.

The contracts were awarded under Guillermo Turrent, ex director of CFEI, who had worked with a high-ranking executive and the founder of Whitewater at Royal Dutch Shell in San Diego, California during 2000 and 2001. Details of their employment and behavior while at Shell is documented by the Federal Energy Regulatory Commission (FERC), where a case remains open that examines the company’s purported overcharging of the state of California for electricity in the negotiation of a long-term contract. During that time, just a year after opening its market to private competition, California suffered an electricity crisis that included widespread blackouts that affected millions of residents and caused record price increases for power that almost bankrupted the state government.


Mexico to recover investment in Texas refinery in 2-3 years, president says


Source: Reuters

Mexico should recover its investment to buy the controlling stake of the Deer Park refinery in Texas during the next two to three years, President Andres Manuel Lopez Obrador said on Wednesday.

Mexican state oil company Petroleos Mexicanos (PEMX.UL) this week announced the purchase of a 50.1%-stake in the 340,000-barrel-per-day refinery from its partner Royal Dutch Shell (RDSa.L) for some $596 million.


Mexico to buy Shell share of Texas refinery for $600 million


Source: AP

MEXICO CITY (AP) — Mexico said Monday it will buy Shell’s 50% share in the jointly owned Deer Park refinery near Houston for about $600 million.

The move comes as part of President Andrés Manuel López Obrador’s central policy to build, acquire or renovate oil refineries, in an era when most countries are trying to reduce their reliance on fossil fuels.

“We are going to stop buying fuel abroad … we will become self sufficient by 2023,” said López Obrador, who is spending about $9 billion to build a similar-size new refinery in his home state of Tabasco.


Mexico’s Power Plants Burning Fuel So Dirty Ships Can’t Use It


Source: Yahoo! News

(Bloomberg) — Fuel that is so dirty that the global shipping industry banned its use last year is being burned at the highest level in three years in Mexican power plants.

With the global shipping industry shunning sulfurous fuel oil to curb emissions, storage tanks in Mexico are overflowing with the stuff, a byproduct of its attempt to produce more gasoline domestically. The solution Mexico has chosen is to push more of it into electricity generation, replacing cleaner-burning natural gas. Consumption of the dirty fuel jumped by almost 50% in the past year to more than a 100,000 barrels a day in March, according to government data.


Mexico’s president criticizes Shell-Pemex joint venture in Texas refinery


Source: Yahoo! News

MEXICO CITY, May 6 (Reuters) – Mexico’s president on Thursday criticized the partnership between state oil company Pemex and Royal Dutch Shell in a Texas refinery, saying it has not yielded any benefits for Mexico.

President Andres Manuel Lopez Obrador, an energy nationalist who has sought to revive the fortunes of the deeply-indebted Pemex, said that no profits have been repatriated to Pemex since the partnership with Shell was established in 1993 as they have all been re-invested.