Pemex Sees Total Debt Rising Above $100 Billion Next Year
Total debt at Petroleos Mexicanos may rise to more than $100 billion in 2016 as the state-run oil producer plans to issue more debt amid a slump oil prices and Continue Reading
Eni tapping into offshore Mexico
Italian energy company Eni said it was cleared by Mexican authorities to start development of three oil fields in territorial waters in the Gulf of Mexico. “Eni will now proceed Continue Reading
Pemex Rating Cut by Moody’s on Falling Output, Low Oil Prices
Petroleos Mexicanos lost its highest credit rating ever as Moody’s Investor Service downgraded the state oil producer one level, citing a deteriorating credit profile because of lower crude prices, high taxes and falling production. The cut leaves Mexico City-based Pemex at Baa1, the third lowest investment grade and one level below Mexico’s sovereign rating of A3. Moody’s outlook for the company is negative. The rating takes into account the Mexican government’s support for its national oil company, according to a statement announcing the downgrade. Tuesday’s downgrade follows Pemex’s worst-ever quarterly result on Oct. 28, when it announced a net loss of $10.2 billion. The company, which is headed for an 11th consecutive annual drop in production this year, said total debt surged to a record $87.3 billion. "Moody’s believes that Pemex’s credit metrics will deteriorate further in the short to medium term,” Nymia Almeida, a credit analyst at Moody’s, […]
Oil Deal of the Year: Mexico Set for $6 Billion Windfall
Mexico is set to get a record payout of at least $6 billion from its oil hedges this year, according to data compiled by Bloomberg. The Latin American country locks in oil sales as a shield against price declines through a series of financial deals with banks including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Citigroup Inc. For 2015, Mexico guaranteed sales at almost $30 a barrel higher than average prices over the past year. The 2015 payment, due next month, is set to surpass the record from 2009, when the Mexican government said it received $5.1 billion after prices plunged with the global financial crisis. The country’s crude has fallen by almost half over the hedging period so far this year. Crude sales historically cover about a third of the government budget. "The windfall is huge," said Amrita Sen, chief oil analyst at Energy Aspects Ltd., […]
Mexico asks to join IEA
Mexico submits request to join the International Energy Agency, saying doing so would advance energy security interests. Photo by tcly/Shutterstock PARIS, Nov. 17 (UPI) — Mexico’s secretary of energy said from Paris his country submitted a formal request to join the Western-backed International Energy Agency. Founded in the wake of an Arab oil embargo in the 1970s, Mexican Energy Secretary Joaquin Coldwell said joining the Paris-based IEA would advance regional interests . "The IEA offers a forum to develop joint answers and global co-operation schemes to guarantee energy security, promote economic development and foster environmental sustainability worldwide," the secretary said in a statement. Mexico is the second-largest economy in Latin America and the fourth-largest producer in the region, after the United States, Canada and Brazil, respectively. The government recently auctioned off rights to 14 tracts covering an estimated 2,600 square miles with reserve estimates of around 686 million barrels […]
Look to Mexico for some of the best oil market story lines through 2020
“Reform” is one of those words that means anything you want it to mean. It’s been deployed in so many political fights, it has really lost its meaning in most contexts. I suppose some people still say a teen car thief is sent off to “reform school,” but I doubt it. Here in Mexico City, that word is loaded. I’m writing this 12 floors up from the Paseo de la Reforma, the grand boulevard named for the civil war between liberals and conservatives here in the 1850s and 1860s. “Reform” today in Mexico means the multi-billion dollar undertaking by the government in education, telecommunications, labor and, most importantly to me, energy. Like anyone trying to get anywhere through traffic in the capital, the makeover is running late. Right now it’s about a year late. Traffic circle outside the Mexico City energy conference. Investors will need the craftiness of Diana […]
Mexico Casts Wider Net for Oil Buyers as U.S. Interest Wanes
Mexico isn’t breaking up with U.S. oil refiners, but it sure seems like it wants to see other people. Mexico reduced its crude exports to the U.S. in September to the lowest level in more than 25 years as it looks further away for buyers with Gulf Coast refiners flooded with shale and oil sands. Petroleos Mexicanos, the state-owned oil company, shipped 550,000 barrels a day to the U.S. in September. That’s the lowest level in Energy Ministry records dating back to 1990. It’s the first time since 1992 that less than half of Mexico’s oil exports have gone to its northern neighbor. “We’ve seen the U.S. really squeeze out a lot of importers,” said Carl Larry, head of oil and gas for Frost & Sullivan LP. “Now Mexico is feeling the pressure, too.” U.S. and Canada supplied American refineries with 74 percent of their crude last week, up […]
Pemex receives U.S. oil swap license, but for less than planned
A vehicle is seen beside fuel pumps at a Pemex gas station in Mexico City, January 13, 2015. State oil company Pemex [PEMX.UL] said on Wednesday it had received a license from the United States to import U.S. light crude in exchange for exports of Mexico’s heavier crude oil for the first time, but with a lower ceiling than originally planned. The terms of the year-long license will allow Pemex’s commercial arm, Pemex Comercio Internacional (PMI), to import U.S. light crude to process in its refineries from October, with the limit capped at 75,000 barrels per day (bpd). A Pemex spokesman said the decision to cut the original plan to import up to 100,000 barrels per day was made in accordance with the company’s present needs at its refineries. The first U.S. shipment would arrive in Mexico from the first half of November, he said. "The permit is for […]
Poor quarterly results could push Pemex to sell valuable assets: analysts
Quarterly results reported Wednesday by Pemex could prompt the state company to offer sales or mortgages of valuable assets, including major pipelines and deepwater upstream rights, analysts said. Crude production in the third quarter stood at 2.266 million b/d, down 5.5% from 2.398 million b/d in the same period last year, Pemex said in a report to the Mexico Stock Exchange. The company registered a net loss of 167.7 billion Mexican pesos (about $10 billion), almost three times as much as the 59 billion pesos it lost in last year’s third quarter. Pemex pointed out that its crude export earnings were slashed as the price of its oil dropped to $42.75/b from $90.40/b over the period. "The results may be shocking but they hardly come as a surprise," said Arturo Carranza of the Mexico City-based Solana consultancy. "These sort of negative results have been going on for two years […]
Chinese firm invests in Mexican wind power projects
China’s Envision Energy announced the acquisition of a majority stake in ViveEnergia, a Mexican wind power renewable energy developer. File Photo by Pat Benic/UPI MEXICO CITY, Oct. 19 (UPI) — China’s Envision Energy announced the acquisition of a majority stake in the wind energy projects of Mexico’s ViveEnergia. Low-speed wind and turbine manufacturer Envision Energy, based in Shanghai, sees itself as a competitor to the Spanish company Gamesa, which dominates Mexico’s wind energy market with a 73 percent share. Envision Energy’s deal brings it a majority stake in a portfolio of projects not yet started but designed to have a capacity of 600 MW, as well as a strategic partnership with ViveEnergia to develop 1.5 GW of wind energy capacity by 2020. The acquisition includes a plan to bring the planned projects to a ready-to-build stage by the end of 2015, the companies reported. Terms of the agreement were […]