OPEC Visits Mexico for First Time in Seven Years

This week, the Secretary General of OPEC visited Mexico for the first time since 2016 as he met with Rocío Nahle and President López Obrador to discuss energy security and self-sufficiency. Moreover, it was reported that Emilio Lozoya, the former CEO of PEMEX, will face trial for the Odebrecht case. Woodside announced that it is on track to make a final decision on the investment decision for Trion. 

This and more in your weekly roundup! 

OPEC Visits Mexico

On March 9, 2023, Haitham al-Ghais, Secretary General, OPEC, visited Mexico for the first time since 2016, as he met with President López Obrador and Rocío Nahle, Mexico’s Minister of Energy to discuss energy security and self-sufficiency. OPEC comprises 16 countries and seven observers, including Mexico. 

Former PEMEX CEO Lozoya Will Face Trial for Odebrecht Scandal

Emilio Lozoya, the former CEO of PEMEX, will stand trial for corruption charges related to the Brazilian company Odebrecht's bribery scandal in Mexico, by orders of judge Gerardo Genaro Alrcón from this Monday. The Federal General Prosecutor’s Office (FGR) requested a 46-year sentence.

Woodside on Track for Final Investment Decision on Trion

At this year’s CERAWeek, the Australian company Woodside Energy announced that it is on track to make a final investment decision on the Trion offshore oil project, which would lead to the first deepwater production in the Mexican side of the Gulf of Mexico.

Natural Gas Production Up 6.5%, Driven by PEMEX

Natural gas production in Mexico averaged 4.25Bcf/d in January, up from 3.99Bcf/d in January 2022. According to CNH, PEMEX supplied 4.03Bcf/d of the total, an increase from the 3.77Bcf/d that it supplied the previous year. Meanwhile, private operators produced 224MMcf/d, a decrease from 226MMcf/d in 2021.

PEMEX, Honduras Sign Memorandum of Understanding

PEMEX announced that it signed a Memorandum of Understanding (MOU) with Honduras, aligned with President López Obrador’s commitment to help the Central American country to develop its oil industry. Octavio Romero Oropeza, CEO, PEMEX and the Minister of Energy of Honduras, Erick Tejada, signed the agreement following a deal between López Obrador and Xiomara Castro de Zelaya, the President of Honduras.

PEMEX Hunts Debt Financing Options Barring Pricy Capital Markets

In January 2023, PEMEX issued a US$ 2 billion bond with a 10-year maturity to refinance its debt of US$105 billion. However, further moves on capital markets are unlikely, as the NOC’s CEO told Reuters that these environments are “pricy” and that the company has been “punished” by rating agencies.

Following Article 26, PEMEX Renews its Contract with KPMG

In March 2023, PEMEX extended its contract with KPMG. The auditing consulting company, led by Victor Esquivel in Mexico, will continue to provide auditing services to the state-owned oil company until 2025, just like it has in the past.

Chevron to Drill a Deepwater Well Near Coast of Tabasco

Chevron will invest US$120 million to drill a well in the Salina Basin off the shore of Tabasco, in Block 22. Chevron is the main operator with a 37.5% share, the remainder divided between PEMEX and INPEX, and hopes to extract heavy crude.