PEMEX Promises Billions for Zama; Vitol to Re-Enter MarketBy Conal Quinn | Wed, 08/10/2022 - 19:48
Among this week’s top stories, PEMEX promises to invest billions of dollars in the Zama offshore development should Talos recognize the NOC as the site’s operator. Elsewhere, the prospect of Vitol’s return to the Mexican market intensifies as backroom talks continue with PEMEX over a compensation figure to be agreed upon in the wake of the high-profile bribery scandal.
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PEMEX is willing to invest billions of dollars in the Zama field once the American company Talos Energy, leader of a consortium disputing the ownership of the project, accepts the state company as the operator, said PEMEX’s Director General, Octavio Romero.
A Reuters exclusive report suggests that talks are advancing between PEMEX and global energy trader Vitol with an eye on resuming their business arrangement which broke down last year in the aftermath of a high-profile bribery scandal. The prospect of a return to business as usual comes after the Dutch energy giant finally handed over the names of the corrupt officials who received the bribes.
Workers from PEMEX as well as Mexico’s Navy, Army and Air Force with expertise regarding firefighting were sent to Cuba to help mitigate a fire caused by lightning hitting an oil tank in Matanzas. The fire was brought under control this Tuesday, having destroyed 40 percent of the fuel storage facilities. One firefighter died and 14 went missing.
The National Hydrocarbons Commission (CNH) this week authorized PEMEX's proposed modifications to an exploration plan for an onshore assignment in the state of Veracruz. The assignment relates to contract AE-0124-2M-Llave ,which covers an area of 1,790km² and falls within the Veracruz Basin oil region, located 23km south of the port of Veracruz.
Mexico’s oil and gas industry is one of the key drivers of the country’s economy. Since the beginning of his administration, President López Obrador pledged to make its development a priority
Russia's flagship Urals crude has been shunned by its previously biggest customers, as many have committed to reduce dependence on the country's oil. However, with hefty discounts on offer, the grade has been redirected to other markets and has found a growing outlet in Turkey, according to Urals traders and ship-tracking data.
Devon Energy agreed to acquire Validus Energy for US$1.8 billion in cash to expand in the Eagle Ford shale patch in South Texas.
Offshore fields including Zuluf, Safaniyah, Berri, Abu Safah and Manifa are crucial to country’s long-term production strategy.
The price spread between Brent and West Texas Intermediate (WTI) oil increased to a high of US$13.26/b on July 29, the highest price spread since Jan. 14, 2014, reflecting supply and demand dynamics in Northwest Europe, according to the US Energy Information Administration (EIA).