F1 Driver Wins Lawsuit Against PEMEX
Formula 1 championship driver Sergio “Checo” Pérez, who represents Mexico through the Red Bull team, will be awarded US$2.8 million after successfully suing PEMEX for violating their sponsorship contract. The NOC had been one of his sponsors in seasons previous to 2018. However, when the current government took office in that year, PEMEX ceased the sponsorship, breaching their contract with the driver in the process. According to a report from Forbes, PEMEX alleged that they were ending the sponsorship at the time because they claimed that they had “other priorities”.
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SENER Suspends Trafigura’s Permits
Geneva-based multinational company Trafigura, one of the world’s largest resource traders, has seen several of its fuel import permits suspended by the ministry headed by Rocío Nahle. Specifically, four permits are in the process of cancellation, while one has expired. All of the permits covered jet fuel, diesel, and gasoline specifications. A spokesperson for the company stated that Trafigura “sees no valid basis for the suspension of import permits for Trafigura Mexico. Trafigura complies with applicable laws and regulations in the jurisdictions in which it operates, including Mexico.”
GOM Oil Production Still Recovering From Hurricanes
Up to 16 percent of oil production in the Gulf of Mexico is still offline, following the two recent hurricanes which greatly damaged infrastructure and operations, Hurricane Ida and Hurricane Nicholas. According to the United States Bureau of Safety and Environmental Enforcement (BSEE), up to 16 percent of crude oil production, approximately 300,000 barrels per day, is offline as companies deal with damage control and restoration. Ida’s effects in particular are expected to linger, as revealed by the bureau’s final report on devastation. The same report shows that 31 production platforms are still evacuated, all of them located offshore in the Gulf. Gas production has suffered as well, with approximately 25 percent of production offline.
PEMEX Secures New Terminal in Renegotiated Agreement with Braskem
A year after PEMEX almost terminated its ethane delivery contract with Brazilian petrochemical producer Braskem Idesa and its facility Etileno XXI, the NOC has reportedly reached a new gas supply agreement which includes the development of a US$400 million ethane terminal in Veracruz. In the original 2010 contract, PEMEX had agreed to supply Braskem Idesa with 66,000 ethane barrels per day for 20 years. Under the renegotiated agreement, Idesa will now receive at least 30,000 barrels per day until the proposed terminal becomes operational in the second half of 2024 or early 2025.
The UK’s Fuel Retail Crisis Continues
Fuel retail stations in the UK have now completed their first week in a supply crisis caused by both panic purchasing and a shortage of truck drivers, among other factors. The UK’s crisis began by government officials denying there was even a crisis to begin with. Transport minister Grant Shapps had claimed over the weekend that all reported shortages were being caused by panic buyers and that the situation would normalize on its own by the beginning of the week, since fuel stockpiling is not common in the UK. Leaders from ExxonMobil, Shell and BP, three of the most important fuel retailers in Great Britain, have met with business minister Kwasi Kwarteng to coordinate an ongoing response.