CNH to Fine PEMEX, Government Provides Dos Bocas Update

PEMEX is gearing up to launch tenders for two key oil fields. In other news, energy regulator CNH may fine PEMEX for flaring excessive amounts of natural gas. Wintershall Dea continues its developments in the Mexican oil and gas sector.

Ready for more? Here is the weekly roundup!

Mexico:

PEMEX Launching Tenders for Ixachi, Quesqui

PEMEX announced it is launching new tenders this week for the leasing of drilling rigs at the priority Ixachi and Quesqui fields. In recent months, Ixachi and Quesqui, discovered in 2017 and 2019 respectively, have picked up the slack from underperforming mature fields, adding a combined 54Mb/d by the end of 1Q22.

CNH Could Fine PEMEX For Excessive Natural Gas Flaring

Energy regulator CNH is preparing to fine state-owned oil company PEMEX for allegedly burning off excessive amount of natural gas at a major oil deposit, further proof of an environmental hazard that appears to have grown in scope during the past years.

CNH’s Consultative Council Meets For the First Time in 2022

Throughout the past two years, CNH continues to evaluate and further its regulatory improvement strategies. For the first time this year, the CNH’s Consultative Council took place, in which members analyzed Guidelines for Oil Well Drilling, originally published in the Official Gazette of the Federation (DOF) in Oct. 2016 and later reformed in Nov. 2017.

CNH Approves PEMEX Exploratory Drilling in Veracruz, Tabasco

This week, CNH authorized PEMEX to carry out exploratory drilling in Veracruz and Tabasco as part of the NOC’s efforts to replenish its oil and gas reserves. One of the approvals involves the shallow-water well Popoca-1EXP, off the coast of Tabasco. Meanwhile in Veracruz, PEMEX is set to commence drilling at the Chawila-1DEL and Chuyan-1EXP onshore wells. 

Wintershall to Drill Two Exploratory Wells in the Gulf of Mexico

CNH approved Wintershall Dea's proposed modification of the exploration plan for shallow water wells Kan-1EXP and Ix-1EXP, located within the perimeter of contract area CNH-R03-L01-AS-CS-14/2018. According to calculations, the project will require an investment of between US$65 and US$81 million, considering both operative scenarios with the prospect of recovering 48 MMboe.

Dos Bocas Construction Update

The Ministry of Energy (SENER) released a video this week detailing the progress made in the construction of the Olmeca refinery at Dos Bocas, a month away from its planned inauguration date. Despite slowing down in recent months due to a lack of resources, SENER maintains that the project is still on track to meet its July 2 deadline.

Oil Spills Raise Question of Pipeline Safety and Maintenance

Over the past decade, oil spills have become a somewhat commonplace occurrence in production key sites like the Gulf of Mexico, where the Deepwater Horizon oil spill, one of largest oil spills in record history, took place in April 2010 on the US side. More recently, on the Mexican side, a fire erupted near the PEMEX’s Ku-Maloob-Zaap offshore platform complex

International: 

OPEC+ Seen Sticking With Supply Plan Even as EU Sanctions Russia

The group expected to ratify 430Mb/d hike for July 2022. Analysts predict only half this increase will be implemented.

Two-Horse Race in Petrobras Tender for Buzios Mega-Floaters

The Brazilian oil giant could order up to three FPSOs if prices are competitive.

Saudi Arabia’s Making $1 Billion From Oil Exports Every Day

Saudi Arabia’s oil exports reached US$30 billion in March, the highest in at least six years, driven by a rally in oil prices and rising production.

Woodside Closes Acquisition Of BHP Petroleum Business

Woodside and BHP have completed the merger of Woodside with BHP's oil and gas portfolio to create a global energy company. Woodside has acquired the entire share capital of BHP Petroleum International (BHPP) and issued 914,768,948 new Woodside shares to BHP, which the company will distribute to its eligible shareholders.