Mexico ends nationalised industry oilfield monopoly

The Shell operated Perdido offshore oil drilling and production platform. Photo courtesy of Shell.
The Shell operated Perdido offshore oil drilling and production platform. Photo courtesy of Shell.

Oil majors are poised for a drive into the Mexican deep water oilfields as the government ends the 76 year old state monopoly of oil and gas exploration and development.

 

Mexico will put some oilfields out to tender next year after state oil company Pemex has been allowed to pick at least some of the fields it will be able to retain rights to. The fields likely to be released and are of most interest to international oil majors are thought to include parts of the ultra deep water Perdido Fold Belt, some heavy oilfields and parts of the technically challenging Chicontepec formation.

 

Mexico has an estimated 160Bn barrels of oil equivalent in proven, probable and prospective reserves and resources across offshore oil and gas and shale oil and gas. There is 86.8Bn barrels of prospective resources in deep water and in unconventional oil and gas like shale, as well as 28Bn in traditional resources.

 

Pemex wants to retain rights to some 97% of proven reserves, 83% of probable and proven, or 2P, reserves, and 71% of reserves classified as proven, probable and possible, known as 3P reserves.

 

This ‘wishlist’ has been submitted to the government which will rule on what Pemex can keep by September, but individual fields could be released for development before that to allow Pemex to maintain a viable pipeline of projects.

 

The decision on Perdido is likely to generate the most interest from the international oil majors as it seems certain that at least some parts of it will be released to the private sector. The field is near the Great White Field on the United States side of the Gulf of Mexico, already under development by Chevron, Shell and BP. The existing Shell operated Perdido offshore oil drilling and production platform is the world’s deepest at 2,450 metres and has been in production for four years.

 

Pemex is thought to be less interested in retaining some extra heavy oilfields as it lacks the expertise – which several oil majors do have - to develop them. The Mexican government said it was possible that Pemex would be asked to take on some developments that do not appear on its wish list.

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

HS2 offers free training to help jobseekers get into Construction

HS2 offers free training to help jobseekers get into Construction

College leavers and West Midlands residents who want to start a career in construction have just one week left to sign up for HS2’s free job training programme.   The accredited construction training course, which takes just 6-8 weeks to complete, is open to residents aged 18 and over

New sea wall for Dawlish rail route reaches key milestone

New sea wall for Dawlish rail route reaches key milestone

The railway through Dawlish is now better protected as construction of the new, bigger sea wall has reached another major milestone.   The installation of all 164 wall panels, 203 pre-cast blocks and 189 recurve units which return waves back out to sea is now complete. This innovative design

Prime Minister approves £700m Sizewell C funding

Prime Minister approves £700m Sizewell C funding

The project, which is being developed by French energy company EDF, is expected to cost about £20bn overall and needs to attract major institutional funding to get shovels into the ground.   In a speech at Sizewell on Thursday, Johnson said he was ‘confident’ the plant

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.