Pemex seeks partners to boost Mexico refinery, logistics margins

1/27/2016 Reuters

Pemex LogoJan 27 Mexican state-owned oil company Pemex is seeking private partners to improve margins at its refineries and logistical services, a top company executive said on Wednesday.

Alejandro Martinez, head of the newly created Industrial Transformation division, which groups together much of the company’s activities beyond exploration and production of crude oil, said Pemex is evaluating the monetization of existing assets by selling them and then leasing them back.

Pemex, like all oil companies, is grappling with a severe cash crunch due to a more than 70 percent decline in crude prices since 2014.

Speaking at an energy forum, Martinez specifically pointed to projects covering waste water treatment, hydrogen supply, nitrogen separation and crude conditioning as areas in which the company will seek out new private partners.

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Mexico finance minister says ready to support Pemex

1/27/2016 Reuters

pemex2Mexico’s finance minister on Wednesday said the government is considering injecting more capital into state-owned oil company Pemex, though any decision is not “imminent” and will depend on oil prices and the company’s situation.

Crude oil prices have fallen more than 70 percent since 2014, battering Pemex’s balance sheet.

“The federal government, as the 100 percent owner of Pemex, naturally cannot be indifferent to this situation, and we are ready to support it (the firm),” Luis Videgaray told reporters, adding that no concrete decisions have been made yet.

The government is also working with the firm to analyze specific cases where taxes may inhibit Pemex from making investments, Videgaray said in response to a question about whether Mexico could lower Pemex’s tax burden.

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Little Relief For Mexico’s Pemex In 2016: Teneo

1/27/2016 Barron’s

energy - oil_rigMexico’s state-run oil giant Petróleos Mexicanos, or Pemex, has been making some progressin recent months, but 2016 still looks challenging, according to Teneo Intelligence.

Analyst Nicholas Watson writes that the firm’s internal restructuring could hardly come at a worse time, as last week saw Mexican crude prices fall to 2002 levels. Like other energy companies, it faces hard decisions as it struggles to cut costs without crippling its future potential—not always an easy balance to strike.

That said, Watson points to three major ways that Pemex could improve its situation: farming out some of its fields, cutting costs and headcounts, and monetizing non-core assets. However, each of these strategies come with their own challenges.

While the company will cut 10,000 jobs this year, that would still leave it with a payroll of 125,000—high but an improvement, and its November agreement should alleviate some pension problems. As for the other two options, bureaucracy and regulation are hurdles:

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Rampant pipeline theft fails to deter Mexico onshore oil bidders

12/13/2015 Chicago Tribune

Oil barrelsMEXICO CITY – Five incidents of pipeline theft a day, a rate that’s almost doubled in the last two years, isn’t fazing potential bidders seeking to produce oil from onshore fields in five Mexican states.

A record 79 private companies, including Engie of France and Pacific Exploration and Production Corp. of Colombia, have qualified to bid in the Dec. 15 auction now that Mexico’s new laws have opened oilfield development to private companies. That compares with 20 companies that qualified to bid in the country’s Sept. 30 offshore auction, underscoring how the chance to enter Mexico’s nascent oil market is outweighing risks.

“I’m not too concerned about security at this stage,” said Stefan Olivier, CEO of London-based MX Oil. “We are very interested in Mexico and we are going to be bidding” in the Dec. 15 auction.

Mexico’s state-owned oil producer Petroleos Mexicanos documented 3,600 illegal taps on pipelines in 2014, a 40 percent increase from the 2,627 a year earlier, costing the company an estimated $792 million in stolen fuel. The taps are used to siphon out oil and gasoline in transit.

Mexico’s Pemex Steps Up Refinery Investment Plans

12/8/2015 The Wall Street Journal 
120px-PemexMEXICO CITY—Mexico’s national oil company Petróleos Mexicanos plans to invest $23 billion in coming years to upgrade its refinery system, increasing production of clean fuels and expanding its crude-oil processing capacity, government officials said Tuesday.

The ambitious investment projects, some of which are already under way, come at a time when the state company is struggling with budget cuts as a result of the slump in world oil prices and facingcompetition in exploration and production for the first time in its 77-year history under new energy laws.

President Enrique Peña Nieto announced the planned investments at the Tula refinery in central Mexico where Pemex is carrying out a $5 billion upgrade that will make it the company’s largest with processing capacity of 340,000 barrels a day.

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Mexico’s PEMEX opening five gas stations in Texas

12/4/2015 San Antonio Business Journal

120px-PemexMexico’s national oil company Petróleos Mexicanos is opening its first gas stations in the United States with five inaugural store right here in the Lone Star State.

Known as Pemex, the Mexican oil company opened its first gas station at 9722 Park Place Boulevard in Houston on Thursday morning. Four more stations are planned to open in Houston this month.

Although Pemex has a refinery in the Houston suburb of Deer Park, the organization reported that the five gas stations are franchised and do not sell their brand of gasoline.

The newly opened Pemex gas station includes a fully-stocked convenience store and a “Taco Shack” restaurant.

Pemex officials said Houston was chosen as their launching point due to its high Hispanic population, and in particular Mexican population. If all goes well, they could expand their franchising opportunities in other markets.

“This pilot program will allow us to judge the impact of the Pemex brand against others and will identify business opportunities as part of our evaluation process to enter other external markets,” Pemex officials said in a statement.

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Mexico’s Pemex seeking partners for refinery upgrades

Reuters  11/17/2015

532687354_fdef042d72_zMexico’s state-owned oil company Pemex is seeking private partners for three major refinery upgrades that will allow it to convert more heavy crude into higher-value fuels like gasoline, a company executive said on Tuesday.

Pemex estimates required investment for the construction and installation of coking units at its Salina Cruz, Tula and Salamanca refineries at $12.3 billion.

“We think these projects can be completed by means of partnerships with third parties,” said Juan Marcelo Parizot, Pemex’s head of marketing for its newly-created Industrial Transformation division.

“The goal is to assimilate the best operational and management practices,” he said, adding that partnerships would share risks and rewards as well as lower the amount of capital that Pemex would have to invest upfront.

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