Mexican Crude Bargain Seen Souring in Asia as Impurity Found

April 16, 2015

04/15/15 Bloomberg Business

energy - oil barrelsA few months after snapping up the most heavily discounted Mexican oil in 20 years, Asian refiners are discovering some of these bargains may have been tainted. At least two buyers experienced difficulties in processing Mexican crude because of the chloride content, said people with knowledge of the matter who asked not to be identified because the information is confidential. Petroleos Mexicanos is dealing with Asian clients’ claims that a single light-crude shipment had a high amount of the substance, the state producer known as Pemex said in a statement Tuesday. Buyers in North Asia boosted imports from Mexico as prices for its light oil in February slid to the biggest discount over benchmark grades since at least 1995. Fluctuating quality is a challenge facing refiners in nations such as South Korea that are diversifying crude sources away from Middle East producers amid a global glut. The impurity makes the oil difficult to process, according to industry consultant Vautrain & Co.

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4 dead, 16 hurt in oil platform fire in Gulf of Mexico

April 2, 2015

04/01/2015 USA Today 

AFP/Getty ImagesAt least four people were killed and 16 workers injured when a fire erupted early Wednesday on an oil platform in the Gulf of Mexico belonging to Mexico’s state petroleum giant Pemex, the company said in a statement. The company said one of those who died when the fire broke out at dawn at the Abkatun Permanente platform was a contractor for the Mexican oil services company Cotemar. Pemex said on Twitter that it was using eight firefighting boats to battle the blaze. Two of the injured were in serious condition and 300 workers were evacuated from the Abkatun platform, located in the Campeche Sound, near the coast of the states of Campeche and Tabasco.

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Mexico Crude Output to Fall to 2.29 mn Barrels Per Day in 2015

March 25, 2015

Fox News Latino, 3/25/2015

energy - oil_rigMexican state-owned oil company Petroleos Mexicanos said it expects crude production in 2015 to come in at an average of 2.29 million barrels per day, down from 2.43 million bpd last year, the National Hydrocarbons Commission, or CNH, said.

Natural gas production also will fall this year to 6.36 billion cubic feet per day, compared to 6.53 billion cfd in 2014, the CNH said Tuesday, citing the Pemex Exploration and Production’s Quarterly Operational Program.

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Pemex to Postpone Some Deep-Water Exploration, CEO Says

February 19, 2015

02/18/15 Wall Street Journal 

pemexMexican state-owned oil company Petróleos Mexicanos will likely postpone some unstarted deep-water exploration projects as a result of the drop in oil prices and its recently announced budget cuts, Chief Executive Emilio Lozoya said Wednesday. In an interview with Mexico’s Radio Fórmula, Mr. Lozoya said Pemex is aiming to keep to a minimum the impact the cuts will have on exploration and production. However, some exploration projects in deep waters of the Gulf of Mexico could be delayed, he added. Pemex will make around half of the $8.3 billion in federal government budget cuts this year. The cuts will include delays in a number of refinery upgrades, reductions in spending, and some layoffs.

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Mexico to stop shipping ready-to-use fuel to curb thefts

February 19, 2015

02/17/15 BBC News 



Mexico’s state-owned oil company Pemex has announced it will stop shipping ready-to-use petrol and diesel through its pipelines, in an effort to curb fuel thefts. Pemex says it will use its pipelines across Mexico only for unfinished fuel. That fuel will go through a last phase of mixing when it reaches the company’s storage plants. More than $1bn (£650,000) worth of fuel was stolen by Mexican gangs in 2014, an increase of 70% over the previous year. In a statement, the company warned consumers not to buy illegal fuel tapped from its pipelines as it was likely to damage car engines.

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Mexico to Consider Changes to Pemex Regulatory System

February 5, 2015

2/4/2015 Reuters

120px-PemexMexico will review methods for addressing fraud and other issues brought to the attention of internal investigators at state oil company Pemex and could make changes to its control process across all government bodies, a government minister said on Wednesday.

The review is in response to a Reuters report that found congressional auditors issued 274 recommendations between 2008 and 2012 for Pemex to take serious action over contract and other irregularities, but the state oil company acted in only three cases.

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Mexico Looks the Other Way as Contractors Fleece Oil Giant Pemex

January 26, 2015

1/23/2015 Reuters

8000285504_fe021fbed2_zThe state-owned petroleum giant Pemex paid $9 million in 2011 to have an oil rig towed halfway round the world, from the United Arab Emirates to the Gulf of Mexico. When government auditors looked at the contract, they turned up some problems.

The rig had the wrong equipment for the assignment, according to a report by Mexican congressional auditors. And the tow job itself was a fiction: The rig didn’t need to be moved. It was already in the Gulf of Mexico.

The auditors alerted Pemex in February 2013, urging it to discipline the employees who handled the contract. Pemex did nothing. About a year later, an explosion aboard the rig killed two workers. The cause of the blast is still under investigation by Pemex.

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