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Mexico's Energy Industry

Mexico

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 seals $350-million Gulf of Mexico deal
NEWS
USA - May 15, 2024

Diamond Offshore has won a USD 350-million extension for an ultra-deepwater drillship deployed for Anadarko Petroleum.

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Seadrill wins $118-million drillship commitments
NEWS
Multinational - May 08, 2024

Seadrill has won two drillship contracts in South Korea and the US Gulf of Mexico worth $118 million.

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USA lays out plan for 12 offshore wind auctions over five years
NEWS
USA - April 24, 2024

The US government has unveiled plans for 12 offshore wind auctions over the coming five years, including four by end-2024.

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Top Mexican presidential candidate pledges $13.6 billion for energy
NEWS
Mexico - April 16, 2024

Mexico's presidential frontrunner has unveiled a plan to invest USD 13.57 billion in energy generation projects through 2030.

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CNOOC joins fray in ExxonMobil-Chevron Guyana dispute
NEWS
Guyana - March 21, 2024

CNOOC has filed for arbitration to assert its right to first refusal on Hess' stake in Guyana's Stabroek block, joining…

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Subsea7 wins “large” contract offshore Mexico
NEWS
Mexico - March 14, 2024

Subsea7 has won a contract from Woodside Energy to provide subsea installation services for the Trion field, Mexico's first…

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Mexico’s Round One gets underway
NEWS
Mexico - December 16, 2014

On Monday, bidding started for the first of Mexico’s oil and gas blocks to be awarded in the Round One tender.

The initial areas up for bidding include 14 oil and…

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Pemex investment plans announced
NEWS
Mexico - November 06, 2014

Pemex CEO Emilio Lazoya announced plans on Thursday for Mexico’s national oil company to become the country’s second-largest power producer after the Federal…

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Sino-Mex Energy Fund bolstered
NEWS
Mexico - November 13, 2014

Last Thursday, the Sino-Mex Energy Fund, the largest Chinese investment fund in both Mexico and Latin America, gained an additional commitment of $150 million from…

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Pemex to increase bond sales in 2015
NEWS
Mexico - November 20, 2014

In an attempt to maintain current production levels, Pemex has taken on more debt than has ever been carried by the national oil company, closing out September with…

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Eni and Pemex sign MOU
NEWS
Mexico - October 30, 2014

In a display of further international interest in Mexico’s hydrocarbons sector, Italy’s Eni signed a memorandum of understanding with Pemex on Thursday to initiate…

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Pemex reports higher quarterly losses
NEWS
Mexico - October 29, 2014

Pemex last week reported third quarter losses that amount to $4.44 billion, up from $2.98 billion at this time last year. The heavy losses are due to reasons that…

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