PEMEX Wins Lawsuit Against Oro NegroThu, 10/21/2021 - 16:34
The Mexican Supreme Court (SCJN) voted in favor of PEMEX in the lawsuit filed by its former drilling contractor Oro Negro, which had sued the NOC for over US$1 billion for a breach of contract in the lease of four offshore platforms. While the voting was quite contentious, the main reasoning for the decision was that the mercantile law cited by the contractor did not apply to PEMEX due to its nature as a state owned enterprise, according to La Jornada.
Ready for More? Here’s the Week in Oil & Gas!
Alleged Fuel Smuggling, Reason for Trafigura’s Cancelled Permits
President Andrés Manuel López Obrador claimed once more that foreign companies have allegedly engaged in fuel smuggling, including Trafigura. In late September Trafigura saw a series of its permits cancelled by SENER. As specified in reports published by SENER shortly after the announcement, the permits dealt with import permissions in fuel, diesel and gasoline. At the time, a spokesperson for the company said they saw “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.” The permits might have been cancelled for allegedly taking part in what the President described as “fuel smuggling.”
Gas Distributors Blame Shortages on Commissioners
Mexico City’s LPG distributors have accused commissioners of blocking their daily activities through violence and threats, preventing them from working and delivering this commodity. Gas distributors have warned that the supply of the energy good has “collapsed” and accused strikers of preventing replenishments of carburation centers, kidnapping pipes, beating up drivers and withholding traffic in the routes to stop distribution.
Contract-approved Investments Stagnate
CNH has reported that by September 2021 contract-approved investments totaled US$42.56 billion. Operator investments in Mexico regarding exploration and production have stagnated in the last couple of months, going from US$41.86 billion in May to US$42.56 billion in the closing weeks of September, representing a mere 1.68 percent increase. The Hydrocarbon Information System (SIH) reports that the vast majority of investments programmed are planned to take effect after 2025, totaling US$15.769 billion. In 2020, investments of over US$4.943 billion were approved, the majority of which are for PEMEX migrations and second bid projects in round one. For 2021, investments approved have surpassed US$4.412 billion for rounds 1.2 and 1.3.
Oil Prices Continue to Increase
As winter makes its way in the northern hemisphere and the global energy crisis ensues, oil prices have continued to rake in increased revenue for the eighth consecutive week, following a positive opening on Monday.