Category: Mexico

Petroleos Mexicanos , the crude producer that accounts for about a third of state revenue in Mexico, said it pays taxes on oil production volume that’s inflated by water and other measurement inaccuracies. Under existing law, the company known as Pemex pays some taxes based on reported volume at the wellhead, it said by e-mail yesterday. In the statement, Pemex cut its year-to-date production to 2.34 million barrels a day from a previously reported 2.47 million. Output was overstated because of water content and inefficient measuring and separation systems. “The water content and measurement distortions have increased the fiscal burden on Pemex,” the Mexico City-based company said in the statement. Facing a 10th straight year of production declines, Pemex said output at the end of the year would be about 2.35 million barrels a day. That’s the second revision in a month after Exploration and Production Director Gustavo Hernandez […]

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Mexican state Pemex has revised its annual production target for the year to 2.35 million b/d from 2.44 million b/d, its lowest level for three decades, the oil and natural gas monopoly said Friday. January-through-July production data has been reduced by 126,000 b/d, or 5%, because of miscalculations by antiquated measuring equipment, Pemex said. Water had been counted as oil in the calculations, it added. –Ronald Buchanan, [email protected] –Edited by Richard Rubin, [email protected]

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Petroleos Mexicanos , facing a 10th straight year of production declines , is including water in its oil output and may revise previously reported data, according to a company official briefed on the matter. A record gap this year between reported output and what the state-owned company processes is partly explained by measuring systems at older fields that are unable to differentiate water-heavy oil from actual crude, the official said, asking not to be named as Pemex debates reducing figures for the past three years or more. Last month, the company cut its 2014 output forecast to 2.44 million barrels a day. Pemex, which is preparing to form partnerships with private producers for the first time in seven decades, produced 2.48 million barrels a day through June, while its distribution system processed 2.32 million barrels a day, according to the National Hydrocarbons Commission . The commission didn’t give a […]

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Workers perform maintenance on the Laurus oil-drilling rig operated by Petroleos Mexicans (Pemex) at Campeche Bay off the coast of Ciudad del Carmen, Mexico, earlier this month. Bloomberg News MEXICO CITY—Mexico on Wednesday set aside the bulk of its currently active oil fields for Petróleos Mexicanos but said private companies will be allowed to bid on four-fifths of prospective resources as the government ends the national oil firm’s seven-decade monopoly. Officials hope that the bidding, starting as soon as next year, will spark an energy boom. Pemex’s chief executive said the new competition will help the company, making it more efficient. "Pemex has been waiting for these changes for decades," CEO Emilio Lozoya said in an interview at its headquarters here. "We’re committed to making sure that Pemex continues to be not only the largest company in Mexico, but to regain the largest spot in Latin America and be […]

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Petroleos Mexicanos , preparing for the end of its 76-year state oil monopoly, was granted rights to all the proved and probable oil reserves it sought for development as Mexico opens its doors to foreign competition. Pemex, as the state-owned company is known, will maintain 83 percent of the country’s so-called 2p reserves and 21 percent of potential reserves, Energy Minister Pedro Joaquin Coldwell said today in Mexico City. Mexico’s investment in fields will be $50 billion in 2015-2018, he said during a presentation of the non-competitive bidding known as round zero. The opening of Mexico’s energy industry to private investment is considered to be on a scale with the North American Free Trade Agreement in terms of economic significance, Alberto Ramos , chief Latin America economist at Goldman Sachs, said in an Aug. 7 research note. The energy ministry will now prepare for the first round of open […]

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Mexican lawmakers late Wednesday completed an historic opening of the country’s energy sector to private investors after 76 years of state monopoly, in a move with far-reaching implications for the sector and the country’s economy. Completion of the overhaul is a political victory for President Enrique Peña Nieto, who made it the cornerstone of a reformist agenda intended to improve Mexico’s competitiveness and stimulate economic growth. The victory seemed unthinkable to many when he took office in December 2012. Over the past quarter century, every Mexican president had tried but failed to secure political support to diminish the state energy monopoly. The opening of the energy sector is the culmination of a decades-long effort to liberalize the Mexican economy that began in 1982, when then-President Miguel […]

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Petroleos Mexicanos cut its output forecast to the lowest in at least 24 years as mature fields are shrinking faster than it had previously expected. The forecast was lowered to 2.41 million barrels of oil a day from a prior projection of 2.5 million, said Gustavo Hernandez, Pemex’s head of exploration and production. This will be the Mexico City-based company’s lowest annual output since at least 1990, when it produced 2.55 million barrels a day, according to the oldest available government output data. “We have been working to review the declines of each of our fields that contribute to national production,” Hernandez said today on an earnings call. “In the recent review, we obtained a better idea of the declines of the fields and have adjusted the production expectation downward.” Pemex is counting on a landmark law enacted last year that opens Mexico’s energy industry to private competition for […]

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State-owned oil company Pemex reported a wider second quarter loss hurt by higher sales costs, declining asset values and higher taxes, the company said on Friday. Losses totaled 52.226 billion pesos ($4.02 billion) for the quarter, led by losses at the company’s refining unit, compared to a total loss of 49 billion pesos during the year earlier period. Revenue during the quarter rose 4.1 percent to 409 billion pesos, however, mainly because of higher domestic sales and exports, compared to revenue of 393 billion pesos during the second quarter last year. Sales costs for the quarter rose 13.2 percent, or by 24.4 billion pesos, as a result of preexisting obligations and higher production costs, the company said. "Inside and outside the company, the environment has grown more complex," said Pemex Chief Financial Officer Mario Beauregard in a call with analysts. The company’s tax […]

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State-owned oil company Pemex reported a wider second quarter loss hurt by higher sales costs, declining asset values and higher taxes, the company said on Friday. Losses totaled 52.226 billion pesos ($4.02 billion) for the quarter, led by losses at the company’s refining unit, compared to a total loss of 49 billion pesos during the year earlier period. Revenue during the quarter rose 4.1 percent to 409 billion pesos, however, mainly because of higher domestic sales and exports, compared to revenue of 393 billion pesos during the second quarter last year. Sales costs for the quarter rose 13.2 percent, or by 24.4 billion pesos, as a result of preexisting obligations and higher production costs, the company said. "Inside and outside the company, the environment has grown more complex," said Pemex Chief Financial Officer Mario Beauregard in a call with analysts. The company’s tax […]

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Mexico’s Senate voted Friday to give Mexican companies a greater role in energy projects under the landmark opening of the country’s oil and gas sectors, tightening the national content rules that President Enrique Peña Nieto had proposed and partly satisfying demands of local industry groups and ruling party members. The Senate set a bar of 25% mandatory Mexican content in each new energy project starting from 2015, progressively increasing that to at least 35% by 2025. President Enrique Peña Nieto’s energy proposal sent to Congress in April required at least 25% by 2025. The new national content rules decided by the Senate, which are widely expected to be ratified by the lower house, are still more attractive for private companies than other major oil producers in the region such as Brazil, and critically exclude deep-water projects, analysts said. The rules for deep waters will be set later by […]

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