Mexico to Postpone Deep Water Auction
Mexico, which has started to open its nationalized oil industry to additional private investment, will postpone auctions for deep-water oil exploration and production contracts and adjust the terms of upcoming tenders after an inaugural oil auction failed to meet the government's modest expectations. Energy Minister Pedro Joaquin Coldwell told local television the government will change rules that scared off potential bidders earlier this month, when it was able to auction only two of 14 blocks in a pivotal oil and gas tender. He signaled that the government will relax its requirement that consortia bidding on oil parcels must have one member act as a guarantor and hold shareholder equity of at least $6 billion to protect the state's interest in the event of a major accident.
Round Zero Makes Pemex Major Player
Mexican regulators on Wednesday granted Pemex the bulk of its acreage request as the nation's oil industry opens to private participation, consolidating the state-led company's status as a major force despite losing its monopoly status. Meanwhile, the country's initial Round One acreage offering will include a range of opportunities including shale, deep-water, shallow-water, heavy oil and the nation's Chicontepec area. Those contracts, to be awarded between May and September of next year, will cover probable reserves for development of 3.78 billion cubic feet equivalent and prospective reserves for exploration of 14.6 trillion cfe. Round One will include ample feedback from industry and see some initial terms released at the end of November.
Incentives' For Pemex To Keep Stake In Repsol low
Mexico's Energy Minister said on Monday that incentives for Pemex to keep its stake in Repsol are low, adding to suggestions the state oil company could pull its 2.3 billion euro ($3.16 billion) investment from the Spanish firm. Pemex, Repsol's third-biggest stakeholder, has had an increasingly troubled relationship with the Spanish oil major, over how Repsol handled the loss of a unit in Argentina and the degree of influence it has allowed its Mexican partner. Finance Minister Luis Videgaray, who is part of Pemex's board, said earlier this month that selling the stake would not be a bad idea, if funds were used for investment in Mexico.
