Tag Archives: Mexico energy

Valero Energy signs supply deal to ship fuels to Mexico

San Antonio-based refining company Valero Energy Corp. has signed a lucrative deal that will allow it to supply gasoline, diesel and jet fuel to thousands of new customers south of the border in Veracruz, Puebla and Mexico City.Officials with Valero (NYSE: VLO) confirmed that the company’s Mexican subsidiary, Valero Marketing and Supply de México SA de CV, has entered into a long-term import agreement with Mexico City-based Infraestructura Energetica Nova SAB de CV.

Source: Valero Energy Corp. (NYSE: VLO) signs supply deal to ship fuels to Mexico – San Antonio Business Journal

Mexican Oil and Gas Gaining Momentum – Drillinginfo

Mexico held back-to-back licensing rounds on 12 July 2017 as part of the President Enrique Peña Nieto administration’s goal to lure private investment to the Latin American nation’s upstream.To use an American baseball analogy, Mexico knocked it out of the park each time and now Mexican oil and gas is gaining momentum.The duo-round system on 12 July encompassed a total of 24 blocks. By the end of the day, 21 blocks had been awarded.

See maps at article link below:

Source: Mexican Oil and Gas Gaining Momentum – Drillinginfo

Mexico Oil Privatization Pays Off With Billion+ – Barrel Find – Bloomberg

A consortium of Premier Oil Plc, Sierra Oil & Gas S de RL de CV and Talos Energy LLC made the discovery in the shallow waters of the southern Gulf of Mexico just two years after winning the exploration license. It’s the first new find by a private company in the country in almost 80 years, according to consultant Wood Mackenzie Ltd., possible only after the government ended the monopoly of state-run Petroleos Mexicanos.The Zama discovery “is the most important achievement so far of Mexico’s energy reform,” Pablo Medina, the senior upstream analyst for Latin America at Wood Mackenzie, said by email. “It is one of the 15 largest shallow-water fields discovered globally in the past 20 years.”

Source: Mexico Oil Privatization Pays Off With Billion-Barrel Find – Bloomberg

Talos reports large Gulf of Mexico discovery | The Oil & Gas Year

Talos Energy announced on Wednesday that it, along with partners Sierra Oil & Gas and Premier Oil, had made a significant discovery offshore Mexico through the Zama-1 wildcat well.Initial tests have indicated that Zama could hold up to 1.4 billion-2 billion barrels of original oil in place. The reservoir is thought to contain mainly light oil, with gravities of 28-30 degrees API, in addition to associated gas.“This is both a historic and significant discovery,” CEO Tim Duncan said in a statement.

Source: Talos reports large Gulf of Mexico discovery | The Oil & Gas Year

Premier Oil’s major Mexican oil discovery boosts shares

Premier Oil’s shares rocketed as much as 38 percent on Wednesday on news it discovered potentially more than 1 billion barrels of oil off the coast of Mexico, a major victory for Latin America’s No. 2 economy since the historic opening of its energy sector.Premier, which holds a 25 percent interest in the block alongside Talos Energy and Sierra Oil and Gas, said estimates for the Zama-1 well were in excess of 1 billion barrels, which could extend into a neighboring block.The news of the discovery, in the first shallow-water offshore exploration well drilled by the private sector in Mexico since the country’s 2014 energy sector opening, sent Premier’s shares rocketing as much as 38 percent on the London Stock Exchange and helped the peso strengthen 0.70 percent to 17.785 per dollar.In afternoon trading in London, Premier Oil shares were up 34 percent at 61.83 pounds.The find also hands the government of President Enrique Pena Nieto, which ended state-oil firm Pemex’s decades-long monopoly, a key victory as Mexico prepares to embark on fraught trade, security and immigration talks with U.S. President Donald Trump’s administration.Premier Oil’s Chief Executive Tony Durrant said the discovery “adds materially” to Premier’s portfolio of assets.”(The) Zama-1 discovery announcement appears about as material as we could possibly imagine at this early stage,” Jefferies analysts wrote in a note.The project is jointly owned with Talos Energy, which acts as operator and has a 35 percent stake, and Sierra Oil and Gas which holds the remaining 40 percent.

Source: Premier Oil’s major Mexican oil discovery boosts shares

Mexico Races for Pipes to Reach More U.S. Gas Before Summer – Bloomberg

Mexico is racing against the clock to get natural gas pipelines online this summer.The nation has found itself “in a tight situation,” David Madero, who oversees the government’s Natural Gas Control Center, said in an interview in Mexico City. The season when gas demand typically peaks is fast approaching, and Mexico is still dealing with setbacks in getting long-anticipated pipelines into service.The delays are causing a glut of natural gas to swell up north of the border as U.S. shale drillers wait for the lines to carry their fuel to market. Citigroup Inc. warned in a research note two months ago that the holdups in Mexico would probably force gas in the Gulf Coast to trade at heavy discounts.

Source: Mexico Races for Pipes to Reach More U.S. Gas Before Summer – Bloomberg

BP plans to open its first filling station in Mexico City next week

BP is stepping on the gas in Mexico.On March 9, the British oil major plans to open its first filling station in Mexico City.The company — which won two deep-water exploration blocks last December in a tender in which it partnered with Statoil of Norway and Total of France — says it will grow its petrol station network organically, but a spokesman had no more details ahead of the official launch, writes Jude Webber in Mexico City.Mexico’s energy sector was closed to competition for nearly eight decades, with state-owned Pemex the only player in hydrocarbon exploration and production, as well as filling stations. The company’s green, white and red eagle logo is a fixture on filling stations nationwide.

Source: BP plans to open its first filling station in Mexico City next week

Proposed border tax could harm U.S.-Mexico energy trade: official | Reuters

A border tax floated by aides to U.S. President Donald Trump is “not a good idea” for bilateral energy trade, a senior Mexican official said on Wednesday, also confirming that Mexico’s second-ever deepwater oil auction would happen this year.A 20 percent border tax on Mexican imports to the United States has been pitched by the Trump administration as one way to force Mexico to pay for a new border wall, a top campaign promise.Separately, a so-called border adjustment tax has been proposed by the new administration and its Republican allies in Congress that in theory would tax imports but not exports.Both proposed taxes face opposition from U.S. oil refiners and automakers, among other sectors, warning they would raise consumer prices.”We don’t see this kind of a tax as a good idea,” said Aldo Flores, Mexico’s deputy energy minister for hydrocarbons.”Our position continues to be that free trade and the free flow of these goods has benefited both countries, strengthening the energy security of both,” he said.

Source: Proposed border tax could harm U.S.-Mexico energy trade: official | Reuters

Mexico to the rescue of U.S. frackers

Falling natural gas prices would be even lower if not for a growing U.S. export market — both via pipeline to Mexico and through liquefied natural gas shipments around the world.Warm winter weather has been hard on U.S. natural gas producers, who have watched prices do nothing but slide since the end of last year. Natural gas futures are down 22 percent since the beginning of the year, having run up in late 2016 on the expectation that winter heating demand would result in much more gas coming out of storage.

Source: Mexico to the rescue of U.S. frackers

Treat Mexico as a Strategic Partner

By six former U.S. ambassadors to Mexico

Mexico is of enormous importance to the United States.  We have strong strategic interests in a relationship of respect and collaboration with Mexico while we work through differences on trade, security, and migration.U.S.-Mexico relations touch the daily lives of more Americans than ties with any other country, whether through culture, commerce or travel.  U.S. prosperity and the security of our homeland are deeply affected by the type of relationship we have with our southern neighbor.Much can be improved between Mexico and the U.S. for the good of both countries, but tackling these challenges need not be a win-lose proposition.  Both countries can gain security and prosperity.  Reviving the animosity and “distance” that characterized our relationship in the 1970s or 1980s is dangerous and runs counter to our interests.The six of us have served as U.S. Ambassadors to Mexico, managing the ever-improving relationship across Democratic and Republican administrations since the late 1980s. We have seen firsthand the strategic value of working cooperatively with Mexico to tackle common problems, including crime, terrorism and global economic competition.  Along the way, Mexico has become a more democratic and prosperous country, making it a better and more reliable partner.

Source: Treat Mexico as a Strategic Partner