Exclusive: Mexico moves to launch world’s largest oil hedge program – sources

Oil barrels

09/05/19 – Reuters

By Krishna Kumar & Stefanie Eschenbacher

Mexico has made the first moves to launch its annual $1 billion oil hedging program by asking banks for quotes, sources familiar with the deal said, while buying in financial oil options contracts for 2020 has risen in recent days, consistent with the giant trade.

A Wall Street source and a Mexican congressional source familiar with the program, both of whom declined to be identified because of the sensitive nature of the deal, told Reuters on Wednesday that banks have been submitting offers for the hedge and that Mexico had requested these quotes.

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Mexico hedges 2019 oil at $55 per barrel, spends $1.2 billion on options

1/10/2019 – Reuters

Mexico poised for an ‘energy renaissance’ following reforms

08/25/14 Fortune

energy -drilling_platform_in_seaOpening the country’s oil to foreign investors will accelerate foreign investment and generally ‘improve the lives of its people,’ says think tank.

Mexico’s energy reform will bring the country “enormous benefits” and will be a “game changer” for the nation’s role in the global economy, according to report released Monday.

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Mexico’s Pemex Lowers Expected Oil Output for 2014

08/22/14 The Wall Street Journal

oil rigsMexico’s state-owned oil company Petróleos Mexicanos said Friday that crude-oil output this year would fall to about 2.35 million barrels a day after accounting for water and other impurities coming out of its fields in increasing quantities.

Pemex, as the company is known, said crude-oil measured at the wellhead in the January-to-July period averaged about 2.47 million barrels per day, while the amount of oil obtained after removing water, segregating products and accounting for inventories was 2.34 million barrels a day.

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Mexico awards 83% of oil reserves to state firm Pemex

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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Schlumberger and Halliburton Can Benefit As Mexico Overhauls Its Energy Sector

08/13/14 By Trefis Team. Forbes

Oil Rig 2 by Flickr user tsuda Photo by Flickr user tsudaMexico recently passed new laws to overhaul its energy sector, allowing foreign and private companies to participate in the Mexican oil, gas and electricity industries. The move also ends a seven-decade long monopoly that Petroleos Mexicanos (Pemex), the country’s national oil company, has had over the oil and gas space and should allow the country to attract greater investment into an oil industry that has seen its production decline for close to a decade. While U.S. oilfield services firms such as Halliburtonand Schlumberger have already been doing work in Mexico for Pemex, we believe that the reforms could enhance their activity levels in the country as large international oil companies begin to participate, particularly in underserved (and lucrative) areas such as deepwater and unconventionals.

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Mexico Topples Oil Theft Ring, But Cartel Threat Lingers Over State Petroleum Company

08/08/14 Vice News

oil pipeline150Mexico has taken down a criminal ring dedicated to stealing oil from its state petroleum monopoly Pemex, authorities said on Wednesday night, part of efforts to clamp down on out-of-control oil thefts that have grown exponentially in recent years during the country’s drug war.

The federal attorney general’s office said five people were arrested in connection with a cell of oil thieves, after 14 search warrants were served in three regions of the country. Authorities seized ten properties, at least $20,000 dollars, and numerous tractors, trailers, firearms, luxury vehicles, and jewels.

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Mexico Oil Is Boon for Exxon to BP as Frontiers Teeter

08/07/14 Bloomberg

energy - oil barrelsMexico’s vote on rules for the end of its 76-year state-oil monopoly couldn’t come at a better time for global energy companies from Exxon Mobil Corp. (XOM) to Royal Dutch Shell Plc.

With reserves holding $1.3 trillion of crude at yesterday’s prices, Mexico offers a new opportunity for deep-pocketed producers as well as pipeline and power companies to try and mimic an energy revolution that has spurred U.S. oil output to a 26-year high and pushed Canadian production to records. New access to Mexico comes amid unrest in some African oil nations and sanctions that threaten to strangle Russian output, places where some oil companies have invested heavily in production.

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Mexico’s Oil And Gas Industry Is Open To Foreign Investment For The First Time In Over 75 Years

07/23/14 Business Insider

gas pipeline and gaugeMexico’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.

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Energy: Back to black

06/23/14 Financial Times

energy - oil pumpsAfter more than 40 years in the oil industry, Ali Moshiri thought he had seen it all. As Chevron’s boss for Latin America and Africa, he has witnessed Venezuela’s socialist revolution, Argentine financial turmoil, multibillion-dollar pollution lawsuits in Brazil and Ecuador, and Colombian violence – all before he turned to Africa.

Yet the one thing the unflappable executive thought he would never see is finally happening: after nearly eight decades, Mexico is set to open its oil industry to foreign investment, welcoming back the same multinational oil companies, including Chevron, that it kicked out in 1938 when it nationalised the industry.

“For about 25 years, I have been looking at Mexico and waiting for this moment,” says the silver-haired 61-year-old. “Now we have to calibrate our patience.”

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