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Weekly Roundups

Eni Makes Splash with Offshore Discovery

Fri, 02/21/2020 - 17:47

Eni Announces Discovery of Saasken Exploration Prospect

The big news of the week was the shallow water discovery made by Italian IOC Eni in Block 10 in the Sureste Basin.

The discovery of between 200-300MMboe, according to preliminary estimates, was made following the drilling of the Saasken-1 well in 340m of water. The total drilling depth was 3,830m, while Eni foresees a production high of 100Mb/d.

The Saasken discovery, which comes after last year’s news of the IOC becoming the first private player to produce offshore since the Energy Reform, should help de-risk nearby prospects.

 

AMLO’s Chief of Staff: PEMEX No Longer at Downgrade Risk

Alfonso Romo, Chief of Staff to President Andrés Manuel López Obrador, said the NOC has been strengthened and, as a consequence, is no longer at risk from being downgraded by international rating agencies.

According to El Financiero, Mexico is currently four steps from losing its investment rating with three of the world’s most influential rating agencies: Moody’s, Fitch and Standard & Poor’s.

Romo also noted that with the last revisions of the soon-to-be-released Energy Plan, private investment into Mexico’s deep waters is being “strongly” considered.  

 

PEMEX Meets Only 60 Percent of 2018’s Goals

In 2018, PEMEX only reached 60 percent of the production it had expected during the Energy Reform, Mexico’s Federal Superior Audit Office (ASF) reported.

The AFS’s recently released third version of the 2018 Public Accounts shows that the 1.813MMb/d average registered in 2018 by PEMEX did not meet the 3MMb/d expectations for the year. This figure does not include private production.

ASF also noted that despite the production drop since 2015, PEMEX maintained the same amount of oil arriving to export terminals in 2018, though the amount of unrefined oil sent to the country’s National Refinery System dropped drastically.

 

National Refinery System to Stop Producing Premium Gasoline

Minister of Energy Rocío Nahle has tweeted that the six refineries that make up Mexico’s National Refinery System (NSR) will not produce PEMEX Premium gasoline in 2020. According to Minister Nahle, the fuel, which some 5 million vehicles require in the country, will instead be imported. Some 103Mb/d of Premium ultra-low sulfur fuel will be imported at a cost of MX$83.32 (US$4.41) per barrel