Mexico’s National Hydrocarbons Commission (CNH) has declared Round 1, phase two of bidding for offshore blocks “a success,” the agency’s head said at a press conference…
READ MOREMexico's Energy Industry
in figures
Oil reserves6.1 billion barrels
Oil production1.93 million bopd
Gas reserves200 bcm
Gas production29.2 bcm
Mexico: Latin America's New Energy Powerhouse
The implementation of the Energy Reform Act in August 2014 marked a new era not only for the Mexico’s domestic hydrocarbons industry, but also for the country itself. Among the changes resulting from the act are the restructuring of NOC Pemex to increase efficiency and the opening of oil and gas value chain from E&P to retail to private foreign and domestic companies. Since 2015, two four-tender rounds have taken place, as well as the first auction of Round 3.1. Three more tenders were scheduled for 2018, but have been postponed. Additionally, in 2016, Pemex began farming out some of its more complex acreage to private companies with greater technological expertise and financial resources.
In addition to the reform, one of the biggest drivers of change in Mexico’s energy industry is growing demand for natural gas. Consumption is expected to rise by 64% between 2013 and 2027. Since 2010, Mexico’s gas imports from the USA have grown by 300%, and the US Energy Information Administration predicts they will double by 2019. Demand is outpacing storage and distribution capacity, a problem that spurred the government to lay out the Five-Year National Integrated Natural Gas Transportation and Storage Plan 2015-2019 which aimed to expand the natural gas pipeline network.
Despite being a crude oil exporter, Mexico has been a net fuel importer since 1998. Pemex has taken steps to stem losses downstream, by partnering with private investors for upgrades and expansions at several of its ageing refineries. Additionally, the country’s new president is promoting a project to build a new mega-refinery in Tabasco. The liberalisation of fuel prices across the country was completed in November 30, 2017. That, coupled with fuel demand growth, has created an environment in which local and foreign, small and large fuel retailers can prosper. In March 2017, BP became the first private foreign fuel retailer in the Mexican market. Since then, several others have entered the sector.
Diamond Offshore has won a USD 350-million extension for an ultra-deepwater drillship deployed for Anadarko Petroleum.
READ MORESeadrill has won two drillship contracts in South Korea and the US Gulf of Mexico worth $118 million.
READ MOREThe US government has unveiled plans for 12 offshore wind auctions over the coming five years, including four by end-2024.
READ MOREMexico's presidential frontrunner has unveiled a plan to invest USD 13.57 billion in energy generation projects through 2030.
READ MORECNOOC has filed for arbitration to assert its right to first refusal on Hess' stake in Guyana's Stabroek block, joining…
READ MORESubsea7 has won a contract from Woodside Energy to provide subsea installation services for the Trion field, Mexico's first…
READ MOREUS pipeline company Energy Transfer Equity announced its $37.7-billion acquisition of local competitor Williams.
“As a combined company, we will have enhanced…
READ MOREUS independent oil and gas company Freeport-McMoRan hit significant net pay in their Horn Mountain Deep well in the Gulf of Mexico, the company announced in a Monday…
READ MOREAnglo-Dutch upstream giant Shell will cease all drilling operations in Alaska’s Arctic, the company reported on Monday, after poor results from an exploration well in…
READ MOREFrench engineering company Technip along with South Korean shipbuilder Samsung Heavy Industry are developing a new semisubmersible rig design, with a “low motion”…
READ MOREOil and gas companies bidding for offshore fields in upcoming auctions in Mexico must offer the government a share of the pre-tax profits from the contracts that exceed…
READ MOREMexican state oil company Pemex and the Union of Mexican Petroleum Workers have broken a tense negotiations period and signed a collective labour contract for the next…
READ MOREIn a deal worth $376.1 million, US company W&T Offshore will sell its Yellow Rose field in western Texas to Ajax Resources, a newly-founded private corporation. The…
READ MOREMalaysian company Coastal Contracts’ Agosto-12 gas compression unit has set sail from Yantai CIMC Raffles Offshore’s Longkou shipyard in Shandong, China, to the…
READ MOREMexico will disclose its minimum profit demands for the next phase of its Round One tender prior to the submission of bids, the National Hydrocarbons Commission (CNH)…
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