March 12, 2015
03/11/15 Wall Street Journal
Mexico’s proven oil and gas reserves fell by 3.1% last year to 13.02 billion barrels of crude-oil equivalent as national oil company Petróleos Mexicanos was unable to find new reserves to replace all the petroleum it took out of the ground last year, the National Hydrocarbons Commission said. Reserves of crude oil stood at 9.71 billion barrels as of Jan. 1, versus 9.81 billion a year earlier, the commission said late Tuesday. Natural gas reserves were 15.29 trillion cubic feet, compared with 16.55 trillion cubic feet in 2014. Proven oil and gas reserves are equivalent to 10 years of production at current rates.
July 23, 2014
07/23/14 Business Insider
Mexico’s Senate has approved legislation to implement historic constitutional reform that would open the country’s oil and gas industry to foreign investment for the first time since 1938.
In an 85-26 vote, lawmakers passed the last of four packages of laws Monday to end the monopoly held by state oil company Pemex for 75 years in the exploration and exploitation of energy resources.
July 10, 2014
Mexico is proposing to introduce fuel price caps to replace government-set pump prices in an interim measure as the nation prepares to open up its energy industry to competition for the first time in 76 years.
Under the proposal, price gains from January will be tied to inflation and private gas stations will be able to adjust prices freely under the capped level, Deputy Energy Minister Lourdes Melgar said yesterday in an interview. At present, pump prices rise at a fixed monthly rate set by the government.
January 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.”
January 17, 2014
Oil 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.
January 16, 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.
December 16, 2013
The Wall Street Journal, 12/16/2013
Asian 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.