Mexico will focus on natural gas and refining in its bid to reach energy self-sufficiency, including the deepwater Lakach field and the Deer Park refinery as important assets discussed this week. In other news, high oil prices boost PEMEX’s finances and Talos presents good news in its ESG report.
Mexico’s Minister of Energy, Rocío Nahle, as well as PEMEX CEO Octavio Romero outlined their plans to reach the government’s goal for energy self-sufficiency. This will include a stop in crude exports by 2023, making optimal use of new and existing refining capacity and producing more natural gas.
President López Obrador announced today that PEMEX’s purchase of Shell’s Deer Park refinery will be concluded by the end of January, after reportingthat all credit lines involved in the purchase have been correctly accounted for. This comes after the announcement earlier this month that the sale of the refinery would have to be delayed past its 2021 deadline, which could not be met due to additional requirements imposed by US public authorities.
Talos published its second annual environmental, social and governance (ESG) report. The company said it has “substantially increased the volume and quality of disclosures in this year's report and further clarified alignment with recognized industry standards.”
PEMEX has awarded a major contract to a joint venture (JV) spearheaded by Malaysia’s Coastal Contracts Bhd to build and operate a natural gas conditioning plant at the onshore Ixachi field, located in Veracruz. The plant will treat 300 MMcf/d of sour wet gas.
The company argues that Mexico will produce more oil in 2022, boosted by private producers, this despite a continuing block on upstream tenders or farmouts. Private companies could produce 467,000 b/d by 2028. Meanwhile, S&P expects gas to stay underfunded.
As a difficult to reach deepwater gas field, PEMEX abandoned the Lakach project in 2011. Nevertheless, current gas prices could boost the viability of the field, which the NOC announced as one of its 2022 priorities.
This Wednesday night, a fire broke out at the PEMEX Lázaro Cárdenas refinery located in Minatitlán. According to Veracruz’s Civil Protection service, the fire posed no threat to the population and was soon controlled by fire fighters and government task forces.
In November, PEMEX reached a positive balance of US$8.5 billion dollars, considered the best result in recent years. Favorable prices per barrel of oil helped PEMEX in this achievement.