PROFECO head Ricardo Sheffield Padilla announced this week that 13 fuel pumps in six service stations all over Mexico have been shut down due to suspicious irregularities denounced by users. According to Sheffield Padilla, 159 anonymous tips from users were released through the “Liter by Liter” app, which led to 142 inspections. He also added that the federal subsidy to fuel prices currently stands at 54.27 percent. According to a report from Oil & Gas Magazine, international private operators are currently responsible for both the highest fuel prices in the country (Chevron) and also the lowest (Exxon Mobil).
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Maximum Prices Risk Bankruptcies: COPARMEX
An official statement from COPARMEX claimed that it recognizes the government’s need to address the rise in LPG prices; however, it said setting maximum prices places companies at risk of bankruptcy, in addition to affecting the country's competitiveness. As a result, COPARMEX proposed the promotion of private-public participation in the extraction and exploitation of gas to address prices, without affecting companies.
LPG Consumers More Important Than Companies: AMLO
In response to COPARMEX’s comments, President López Obrador said that he “will defend LPG consumers before companies.” The president stressed that his government will defend gas consumers before any company despite COPARMEX’s requests. “Consumers are our priority because we do not want distributors to abuse them. We understand that COPARMEX has to defend companies but we have the obligation to defend everyone, especially consumers.” López Obrador also commented that the price of complete cylinders of LPG would be monitored together with CRE. “I even want to thank them because they complied. Yes, there was a decrease in price, and this helps and is the most important thing to the popular economy, but also so that inflation does not skyrocket.”
Petrofac Increases Production
Private British operators Petrofac achieved its highest production levels yet in Mexico, with 21,167b/d during June 2021 in its Santuario-El Golpe field, Tabasco, according to CNH data. This represented a 6.73 increase from May 2021, and a 40 percent increase from June 2020. Santuario-El Golpe is one of the three fields being operated by Petrofac in different associations with PEMEX and Perenco, with the other two being Magallanes and Arenque.
Hokchi Opens New Production Well
Major offshore private operator Hokchi Energy, attained an increase in early production levels from 9,000b/d to 14,000 b/d with the drilling and completion of its third production well, Hokchi-11DES. While this is the third production well drilled by Hokchi, it is the sixth well in total (the other three are injection wells). Hokchi’s current development plan calls for the eventual drilling of 14 wells, along with the construction of a reception and processing plant in the Dos Bocas port of Tabasco.