Mexico’s Oil Crisis: Pirates, Cartels, And Corruption

04/19/2018 Oil Price

pemexMexican oil is hemorrhaging money thanks to gasoline-guzzling cartels, seafaring pirates, and widespread collusion within their own ranks. While this is nothing new for the oil-rich but security-poor nation, the problem is now worse than ever, with state-run Pemex losing over a billion and a half dollars a year to thieves.

This month, Pemex released a report including the staggering figure of $1.6 billion–the amount of money that they are losing annually to fuel theft. In the first two months of this year alone, fuel thieves (locally known as huachicoleros) drilled 2,274 illegal taps in Pemex pipelines. This is a staggering 38 percent increase from the same period in 2017, and, even more incredibly, 352 percent more than the same period just four years ago.

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Majors snap up Mexico’s shallow-water offering

03/28/2018 Petroleum Economist

Oil Rig 2 by Flickr user tsuda Photo by Flickr user tsudaMexico saw strong interest from international oil companies in its last bid round before presidential elections in July which threaten to hamper energy reforms transforming the country’s upstream.

Of the 35 Gulf of Mexico shallow-water blocks put on offer this week, 16 drew winning bids, including from Total, Eni, Repsol, Shell and Mexico’s state-owned Pemex.

The clear standout area, as with last year’s shallow-water round, was the Sureste (southeast) Basin, where all of the eight blocks offered up drew multiple competing bids.

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Pemex signs shale contract with Lewis Energy in northern Mexico

03/26/2018 Reuters

pemexMexican state oil company Pemex said on Monday it had signed a contract with U.S. firm Lewis Energy for the exploration and extraction of a shale gas deposit in the north of the country, in the Eagle Ford formation.

Pemex said it expected the contract, in the Olmos field in the northern border state of Coahuila, to yield investment of $617 million, aiming to reach daily production of around 117 million cubic feet of gas by 2021.

Lewis Energy is a privately owned oil and gas operator based in south Texas. It has already drilled on behalf of Pemex in the Olmos field.

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Mexico regulator wants minority stake floated in state oil firm Pemex

03/21/2018 Reuters

120px-PemexThe head of Mexico’s National Hydrocarbons Commission (CNH) urged the government on Wednesday to float a minority stake in national oil and gas firm Pemex on the Mexican stock exchange.

Pemex controls the majority of hydrocarbon reserves in Mexico although the sector has been open to foreign investment in the past four years, but it lacks funds to properly explore and develop the assets, the regulator said.

Juan Carlos Zepeda, president commissioner of CNH which is in charge of Mexico’s contracts with foreign energy firms, said constitutional changes were needed to allow a stake in Pemex to be sold while keeping the company under state control.

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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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Mexican agency finds irregularities in Pemex, Odebrecht contract

09/11/2017 Reuters

Mexico’s top anti-corruption agency said on Monday it had identified 119 million pesos ($6.7 million) in “new irregularities” from a contract between state oil company Pemex and Odebrecht, the Brazilian engineering firm that has admitted paying bribes in a dozen countries in recent years.

Mexico’s Public Administration Ministry (SFP), the government’s main anti-corruption auditor, said in a statement that the contract was for work at Pemex’s second biggest refinery, the Miguel Hidalgo facility in Tula, Hidalgo state and involved an unnamed employee of the national oil company.

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