Pemex faces downgrade risk amid price pain

8/26/15 Financial Times

Pemex LogoAdding insult to the injury of renewed falls in oil prices, Mexico faces the prospect of a ratings downgrade at its national oil company, Pemex.

Moody’s said it had put Pemex’s A3 ratings, the same as Mexico’s sovereign rating, under revision for a possible downgrade because of weak cash generation and a deterioration in the company’s financial profile this year, reports Jude Webber in Mexico City. And, it added: “Moody’s opinion is that it will continue its deterioration in the coming years … and will have large debt needs in the near future”.

Ouch. The downgrade prospect touched a raw nerve at the company, which is already navigating a brave new world at home after been stripped of its nearly 80-year monopoly as Mexico liberalises its energy sector. Its financial debt increased in the second quarter by 16.4 per cent to $85.5bn and 75.5 per cent of its debt is denominated in dollars.

Read more…

Billionaire Tycoon Carlos Slim Actively Bidding In Mexico’s Historic Oil Auction

8/25/15 Forbes

carlos-slimWhen Mexico opened its oil and gas sectors to domestic and foreign private capital for the first time in nearly eight decades last year, it was widely expected that Mexican tycoon Carlos Slim Helú would play a leading role in the country’s new energy landscape. However, it was not until recently that this was confirmed: Slim’s companies have been quietly bidding in Mexico’s historic Round One oil auction.

According to Mexico’s National Hydrocarbons Commission (CNH), Carso Oil & Gas, an affiliate ofGrupo Carso , the conglomerate controlled by billionaire Slim, is participating in the second and third tenders of Round One for oil production contracts.

Carso Oil & Gas has enrolled in the second bidding of Round One for five shallow-water production-sharing contracts in nine Gulf of Mexico blocks. Bids are expected on September 30, 2015.

Read more…

Pemex to send crude to JX Nippon’s refinery in Japan

07/27/15 EBR

120px-PemexMexican state oil and gas company Petróleos Mexicanos (Pemex) has signed an agreement with JX Nippon Oil & Energy to ship six million barrels of light crude to the latter’s refinery in Japan.

Pemex will deliver Isthmus crude which is mainly produced in the Campeche zone, Mexico.

The crude will be transported in six cargoes from Pemex’s Salina Cruz terminal on the southern Pacific coast between this August and January 2016, reported Reuters. This will be in addition to about four million barrels shipped to JX Nippon in the first half of the year.

Read more…

Mexico’s Pemex pays $295 million to settle Siemens dispute

7/20/15 Reuters

oil rigsMexican state oil company Pemex PEMX.UL reached a $295 million settlement with a group including German industrial conglomerate Siemens (SIEGn.DE) in a longstanding dispute over a refinery project, a person familiar with the matter said on Monday.

The deal was originally announced in March but did not give details of the final settlement.

A Mexican official close to the negotiations said that Pemex had agreed to settle for $295 million. Earlier in the day, Pemex said in a statement that the deal struck definitively ends the 14-year-long dispute, but it did not give a sum.

Read more…

‘Perfect storm’ causing gasoline shortages in Mexico: analyst

7/6/15 via Platts

pemex21Pemex said Monday it has planned “additional volumes of gasoline imports in order to regularize supplies” in several states following what one analyst described as a “perfect storm” of shortages involving red tape and crime.

The state company traditionally prides itself in ensuring supplies of all fuels to industry and consumers. But long lines have formed in recent weeks at the pumps of the service stations that still have gasoline on sale.

The problems have arisen in at least half a dozen states, though not in Mexico City, with its population of 20 million.

Pemex cited several factors for the shortages, including a new billing system that has failed to register the orders made by service stations for new supplies.

Read more…

A massive discovery in Mexico could mark the dawn of a new oil boom

06/16/15 Business Insider

energy - oil barrelsThe Mexican state-owned oil company Petroleos Mexicanos, or Pemex, says it has discovered one of the most copious group of oil fields in the shallow waters of the Gulf of Mexico, its largest such discovery in five years.

The five fields, situated off the states of Campeche and Tabasco, have total proven, probable, and possible reserves that may be as high as 350 million barrels of crude oil equivalent and could produce as much as 200,000 barrels a day, Pemex CEO Emilio Lozoya told an energy conference in Guadalajara on Wednesday. He called the find an “achievement … of great magnitude.”

Read more…

Mexican Crude Bargain Seen Souring in Asia as Impurity Found

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.

Read More…