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Analysis

CNH Gains a Tighter Grip?

Wed, 01/25/2012 - 09:49

In the years to come, the CNH is looking towards internal developments to help accomplish its main objectives. For starters, the regulator is planning to grow. At the moment, there are just over 50 people working at the CNH, a figure they plan to double in the next couple of years. With regard to their finances, in the first quarter of 2012, CNH is expecting a fourfold increase to their 2011 budget of approximately US$5.5 million.

Assuming its new budget is approved, the CNH plans to deliver comprehensive safety standards for shallow water, deepwater, onshore, and shale gas drilling exploration and production. In addition, the CNH will aim to ensure Pemex’s compliance with international safety standards with help from the International Regulators Forum (IRF), a group CNH belongs to and that aims to improve oshore safety standards.

After strong demands from the CNH, Pemex’s gas utilization rate at Cantarell increased in 2011 from 79% to 96.5% by reducing flaring and venting. For 2012, the regulator wants Pemex to go further and increase Cantarell’s gas utilization to 97.5%.

Through the improvement of Pemex’s overall operational standards, the CNH expects higher exploitation rates of hydrocarbon reserves to help raise the country’s profile as a key player in the global oil and gas industry. Its extra budget and sta should help achieve this goal in the years to come.