Mexico: Business Opportunities Supply Oil & Gas Industry
| 19-06-2012 | 1 - 5
Energy, Oil & Gas opportunities in Mexico Mexico is the 7th largest producer of oil in the world but its production has declined in recent years. The national oil company, Pemex has now confirmed it will invest $24 billion dollars annually over the next 5 years, with the main focus to maintain production in declining fields, a more efficient exploitation of proven reserves and a move towards deep-water production. Pemex is also running field laboratories (to research oil/gas field conditions, including enhanced oil recovery) with private companies.
Facts & Figures about the country, why Mexico? Pemex announced plans for a major offshore development over the next two years, including 50 platforms, to develop the newly discovered fields offshore Tabasco, Ayatsil and Tsimin. Investments are expected to be USD$5 Bn. According to the National Energy Strategy 2012-2026, Mexico is planning to increase oil production by 32% (from 2,549mbd to 3,354 mbd) and gas by 94% (11,472 mmfcd to 5,913 mmfcd) including both conventional an unconventional. Pemex is one of the largest national oil companies in the world, as it covers all divisions: exploration and production, refining, gas and petrochemicals, it needs technology and services that the company can’t cope all by itself. Pemex will invest $24 billion dollars annually over the next 5 years in different areas, we have identified the following Pemex’s needs: • • • • • • • • • •
Platform design and construction Exploration and appraisal drilling Exploration and production activities Deep-water technology Geological studies (3D and 2D seismic) Reservoir appraisal and exploration techniques Design, construction, installation and commissioning of pipelines Develop heavy and extra heavy oil recovery technology Training and education Environmental control
Business Opportunities Pemex Exploration and Production Incentive Contracts 2011 saw the successful completion of the first round of E&P integrated services contracts for mature fields. Contracts for the two blocks won by the British company Petrofac Facilities Management Limited (Santuario and Magallanes Blocks) were signed, while the Carrizo Block was re-assigned to Schlumberger due to default with financing by the original winner, Mexican services company Administradora de Proyectos en Campos. On June 2012, Pemex will announce winners for exploration and production incentive contracts for 6 blocks (4 onshore fields and 2 in shallow waters) for extraction in mature fields, using the same contract model as in the first round this summer. In this first round, UK Company Petrofac won two E&P contracts, involving an investment of some £303 million. This exercise has been a significant step within the Mexican hydrocarbon industry represents a first move to open up
the market to private sector companies. Contracts for Mexico’s Chicontepec field and some deepwater contracts are expected to be announced in 2013. Dutch companies can bid for Pemex Exploration and Production contracts, but also can make alliances with companies already operating in Mexico, and sell innovative and unique technologies and services to the winners of the Pemex´s contracts. State owned oil & gas company PEMEX expects to release the tenders (open to foreign & Mexican E&P operators) for incentive based contracts for exploiting the Chicontepec field in 2012. There are 11 areas in Chicontepec field that could be tendered. The Chicontepec oilfield has high levels of proven reserves but access is difficult. With up to 38 billion barrels of oil in place, Chicontepec contracts could offer the best returns to date for private companies - although contracts are only expected to last for around 3 years. Also, PEMEX intends to release deepwater contracts (open to foreign E&P operators) for incentive based contracts in 2012. Pemex plans to invest some US$ 20 bn annually in the next 5 years in order to increase Mexico's reserves recovery ratio to at least 100%. Contracts are expected to be for at least 25 years. All the IOC’s would be interested to bid for these contracts, as long as the contractual framework and tender terms offered are internationally competitive so as to attract international companies with the appropriate know how and technology, and in particular that the tax regime imposed does not act as a barrier to investment.
Events Foro PEMEX, July 30th – 1st August, Mexico City, http://www.forotransformacionpemex.com.mx Congreso Mexicano del Petróleo, 9th -13th September, Mexico City, http://www.cmp2012.com Green Expo, 25th – 27th September, Mexico City, http://www.thegreenexpo.com.mx Energy Day, 9th October, Mexico City, http://www.britchamexico.com
Useful Links Relevant local Trade Organisations www.sener.gob.mx www.pemex.com
Follow up We are inviting Dutch companies to participate in the largest and most important oil and gas trade show and conference in Mexico: Congreso Mexicano del Petróleo, 9th -13th September, Mexico City, www.cmp2012.com. Please contact
[email protected] if you are interested in the Mexican Market.
Contact: Embassy of the Kingdom of the Netherlands in Mexico Irasema Mendoza Martinez Deputy Head of the Economic Department Av. Vasco de Quiroga 3000, piso 7 Colonia Santa Fe CP. 01210, México D.F Tel: (+52) 55 5258-9921 ext. 202 E-mail:
[email protected] Agentschap NL / NL EVD Internationaal/ Informatie & Advies Suzanne Bouman, market advisor Mexico Beatrixlaan 2 / 2595 AL Den Haag Postbus 93144 / 2509 AC Den Haag T +31 88 602 8060 E:
[email protected] W: http://www.agentschapnl.nl/onderwerp/mexico-verken-uw-kansen
Colofon Dit is een publicatie van: Agentschap NL / NL EVD Internationaal / Unit Informatie & Advies Prinses Beatrixlaan 2 / 2595 AL den Haag Postbus 93144 / 2509 AC Den Haag T +31 (0)88 602 80 60 E
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