Tag Archive for: mexican crude

Mexico’s Pemex Jan crude output drops 10.6 pct from a year ago

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Mexican national oil company Pemex produced 10.6 percent less crude oil in January than in the same month last year, the company said.

January crude output averaged 2.02 million barrels per day (bpd), down from 2.26 million bpd during the same month in 2016, according to company data released on Friday.

Meanwhile, crude oil exports were down 3 percent in January compared to the year-ago period.

Shipments for the month averaged nearly 1.09 million bpd, compared to 1.12 million bpd exported in January 2016.

About half of Mexico’s crude exports currently go to the United States.

The Mexican government is in the midst of implementing a sweeping energy reform finalized in 2014 that ended the decades-long production monopoly enjoyed by Pemex, formally known as Petroleos Mexicanos.

The reform also paved the way for first-ever oil auctions open to private and foreign producers, four of which were concluded last year. While a range of oil companies won the blocks on offer, significant streams of new output are not expected for at least several years.

Mexico’s oil regulator, the administrator of the auctions, is expected to oversee three auctions covering a mix of shallow water and onshore fields, in addition to a deep water auction over the course of this year.

Mexican crude output has declined over the past dozen years from a peak of 3.4 million barrels per day in 2014.

The government expects crude production to average 1.94 million bpd this year, and between 1.9 million to 2.0 million bpd in 2018.

mexico-economia

Reuters (Reporting by David Alire Garcia; Editing by David Gregorio) / Hellenic Shipping News

27/02/2017

Mexico 2017 Budget Cuts To Squeeze Pemex, Primary Surplus Eyed

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Mexico’s government on Thursday set out plans for a bigger-than-anticipated cut in public spending in 2017, with struggling state oil company Pemex earmarked for a 100 billion peso ($5.36 billion) reduction in funding.

New Finance Minister Jose Antonio Meade said the budget foresaw planned spending cuts of 239.7 billion pesos ($12.83 billion), targeting a primary surplus of 0.4 percent of gross domestic product (GDP) in 2017. It would be the first such surplus since 2008.

Of the cuts, 100 billion pesos fall on Pemex, which is already facing a funding squeeze and has racked up multi-billion dollar losses for years. Since the government ended its oil and gas monopoly nearly three years ago, Pemex has faced stiff competition from the private sector.

“Pemex is making the biggest contribution to the cuts,” Meade said, presenting the budget proposal to Congress a day after he was sworn in as finance minister following the resignation of Luis Videgaray.

In late 2013, the government threw open the industry to private capital to reverse a protracted slide in oil production, but falling crude prices have undermined those efforts.

Currently running at some 2.16 million barrels per day (bpd), Mexican oil production will slip to an average of 1.928 million bpd in 2017, the budget forecasts. The last time Mexican crude output fell below 2 million bpd was in 1980.

Still, the budget does foresee changes aimed at easing Pemex’s heavy tax load.

Less than two years remain before the next presidential election, and President Enrique Pena Nieto’s government is struggling to ramp up economic growth, having fallen well short of its original ambition to achieve annual rates of 5-6 percent.

Hurt by uneven U.S. demand for its goods, Mexico’s economy shrank in the second quarter for the first time in three years.

Next year, the budget foresees growth of between 2 and 3 percent, compared with 2.0-2.6 percent in 2016.

Despite the 2017 cuts – well above the 175.1 billion the government eyed in April – non-discretionary spending was expected to rise by 144.3 billion pesos, inflated by higher financing costs and a slide in the peso’s value.

Next year the government foresees an overall deficit of 2.9 percent of GDP, 0.6 percentage points less than the 2016 target.

The budget foresaw the peso averaging 18.2 per dollar in 2017, and an average price of $42 per barrel for Mexican crude, in line with the government’s hedging program. ($1 = 18.6600 Mexican pesos)

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Copyright: Rig Zone

Over 20 Oil Companies Register for Auction Mexican Gulf Blocks

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For the auction of 10 blocks in waters of the Gulf of Mexico 21 oil companies have registered to participate, among them Spanish Repsol, Norwegian Statoil and French Total, together with Mexican Pemex, it was known today.

British BP, Anglo-Dutch Shell, Chevron and Exxon Mobil, both of the United States have also registered.

These four international megacorporations, which in the past made up the influential group known as The Seven Sisters, and for decades were owners of the Mexican crude, attempt to recover the exploitation of oil fields, says daily La Jornada.

Through the license contract, the National Commission of Hydrocarbons (CNH) allows winner companies to exploit oil deposits.

Up to 1938, before nationalization of the oil industry, decreed by president Lazaro Cardenas, seven foreign companies -five of the U.S. and two British- were owners of Mexican oil.

As it transcended, the seven transnationals were baptized by Enrico Mattei, considered father of the Italian energy industry, as the Seven Sisters.

The opening date for presentation of proposals for handing concessions on exploitation of a máximum period of 50 years of the 10 auctioned blocks, located in deep waters of the Gulf of Mexico, will be set on December 5, 2016.

Copyright: Prensa Latina