Private Operators Eager To Step InWed, 07/17/2019 - 09:33
The new administration has made it clear that fulfilling ambitious production goals is its top priority, with PEMEX leading the charge. But production from private operators must play a decisive part in reaching these milestones as well, Director General of AMEXHI Merlin Cochran said Thursday at the Mexico Oil & Gas Summit 2019 in Mexico City.
As part of his presentation Priorities of Mexico’s Private Operators, Cochran began by narrating the origin of the association, now composed of 45 members that Cochran admitted was an “eclectic mix” of NOCs such as PEMEX and Petrobras, large recognizable entities such as Shell, Chevron and other flagship IOCs and also much more independent Mexican and American operators and investors, such as Talos and Jaguar, that have taken outsized advantage of the blocks awarded in the bidding rounds.
Founded in 2015, AMEXHI has always understood itself to be aligned with the interests and goals of the state. “Changes in administration do not change our status or the status of our members as partners of the state; we share their goals,” Cochran said. The integration of PEMEX into its ranks means that AMEXHI seeks to create a collaborative space with the state through which the entire industry can grow and develop according to the highest ethical standards at an international level.
After going over AMEXHI’s internal structure, Cochran shared its analysis of the EIA’s 2040 forecast for Mexican production, which predicts 3.4MMb/d through rising new fields offsetting declines from existing fields. In Cochran’s estimation, this is evidence that private operators have a strategic role to play in Mexico’s production future; “In this sense, EIA’s 2040 forecast really became AMEXHI’s 2040 agenda,” he said.
While Cochran did admit that AMEXHI has a vested interest in the bidding rounds being reinstated, he was clear that its plans went significantly beyond this one structure of industry stimulation. “What AMEXHI really has to offer and wants to help enact is a comprehensive development plan not only for the Mexican economy but of Mexico’s infrastructure, of which many elements benefit our members directly, such as the building of ports.”
Cochran concluded his presentation by presenting AMEXHI’s “Five-Year Plan,” which through ambitious investment targets has the explicit goal of reaching 280Mb/d by 2024 so as to reach AMEXHI’s current calculation of 500Mb/d of potential national production coming from private operators.