Ateo
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Historic Mexico Oil Auction Disappoints
http://www.dw.com/en/historic-mexico-oil-auction-disappoints...
Mexico's first auction of oilfields in over 75 years has only attracted two viable bids. The first in a series of oil and gas tenders is seen as a key
test for President Enrique Pena Nieto's reform agenda.
In total, the Mexican government is trying to sell 169 oil and gas fields, both onshore and offshore.
On Wednesday, the government kick-started the process by offering 14 oil fields in shallow water of the Gulf of Mexico worth a total of $17 billion
(15.5 billion euros). It was the first sale of an energy reform that ends the 77-year monopoly held by state-run firm Pemex.
But interest was tepid at best, with US giants ExxonMobil and Chevron, Anglo-Australian firm BHP Billiton, France's Total and Russia's Lukoil skipping
the auction. Only two fields were sold, to a group led by one of Mexico's new independent firms, Sierra Oil & Gas. The consortium includes US
company Talos and Britain's Premier Oil.
The other 12 blocks either received no bids at all, or the bids fell short of what the government had expected.
The sales are a key plank of President Pena Nieto's economic reform agenda, which he pushed through parliament last year despite fierce opposition
from leftist parties warning against giving up what they see as a symbol of national sovereignty.
Pena Nieto hopes the reform will reverse years of dwindling production, which is down from 3.5 million barrels per day in 2004 to 2.3 million now.
Bidders were few and far between at the Mexico City auction
Mexico has historically relied on crude oil revenues to fund about a third of the federal budget. But slumping oil prices, down by roughly half since
last summer, have cut the government's take to about 15 percent in the first quarter.
Bad timing
The timing of this first phase of the sale was awkward, coming a day after a historic agreement on Iran's nuclear program was clinched after 12 years
of negotiations.
The landmark deal is expected to put even more downward pressure on low crude prices, as Iran is preparing to flood an already oversupplied market
with more oil and gas. The glut in the market has made global oil and gas companies more selective with their investments.
"International companies have their eyes set on deep waters, where they are much more competitive," Juan Francisco Torres Landa, a Mexico-based energy
expert for global law firm Hogan Lovells told the AFP news agency.
The Mexican government has planned for four more auctions that include more complex deep-water oil fields and onshore drilling, which are expected to
draw more interest from industry giants.
"This is the first chapter of a story that will have many more events. We can't judge it based on the first chapter," Torres Landa said.
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bajaguy
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Why pay for it
When you can get it for free???
From ensenada.net:
Milked hydrocarbons PEMEX pipeline
There were 2000 liters container
Article posted July 15, 2015
by Karla Lorena Lamas
Members of the Federal Police located in the municipality of Ensenada an outlet, according to the characteristics, was used to extract oil illegally,
where they secured containers with more than 2000 liters of fuel.
The first seizure was made by a complaint from the staff of the plant of Petroleos Mexicanos (PEMEX), who reported low pressure pipeline, near a town
called El Tigre.
The troops moved to kilometer 088 + 900 of the highway Tijuana-Cabo San Lucas, stretch-San Miguel Mission, which placed an abandoned vehicle, carrying
a plastic tank with about 800 liters of gasoline, which had a hose connected to a pipeline.
Given this fact parastatal staff made the cancellation decision and sealing. At the scene, the federal agents also secured a 20 meter hose and diverse
tool.
Drop tanks with gasoline in Golden Valley
In a separate fact, a distance of revision in the area, in a property located in the Golden Valley Subdivision two plastic tanks abandoned, stocked
with 900 and 300 liters of gasoline, respectively were found.
Besides two other containers with 200 and 40 liters of diesel.
In both events, all insured was made available to the Public Prosecutor of the Federation, who will follow up the investigations.
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chuckie
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Mouse fart....
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BajaRat
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Brazen
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Bajahowodd
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There really may be something about the timing, what with the Iranian deal. However, if one were to consider that the major international companies
would rather take their chances in the Middle East versus our friendly neighbor, it sounds insane. I just scratched my head in disbelief when I was
how many companies took a pass on this.
Do they really believe that shale in the North is the answer?
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BajaBean
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Perhaps history was a factor.
The Mexican oil expropriation was the expropriation of all oil reserves, facilities, and foreign oil companies in Mexico on March 18, 1938. It took
place when President and General Lazaro Card##as declared that all mineral and oil reserves found within Mexico belong to the government.
The opposite of love is not hate. It is indifference.
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AKgringo
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It may be a case of the oil companies being leery of having to grease a few palms in order to get a straight up bid considered, and then being shamed
as evil big oil corrupting Mexican officials!
Walmart is one of the largest employers in Mexico now, but they had to jump through those hoops to get there.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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WhackAMolE
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Quote: Originally posted by AKgringo  |
Walmart is one of the largest employers in Mexico now, but they had to jump through those hoops to get there. |
LOL. Jump through hoops is one way to put it. Bribed their way to the top is another.
http://www.bloomberg.com/news/articles/2014-03-26/wal-mart-s...
http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-me...
http://walmart1percent.org/bribery/
and many other links. Google "Walmart Mexican bribery."
ps -- Regarding the oil, there will be much more interest when they auction off the deep water fields, where the big multinationals have an advantage.
Also of course the price of oil crashed last year and that didn't help. But long term this will bring a lot of money to Mexico. Where that money goes
is another story.
[Edited on 7-18-2015 by WhackAMolE]
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