Results in the Midst of Uncertainty: AMEXHIBy Pedro Alcalá | Thu, 10/29/2020 - 18:03
You can watch the video of this presentation here.
Since 2018, the cancellation of bidding rounds have haunted Mexico’s oil and gas landscape. Never before have industry leaders felt the need to reverse a decision so urgently. Oil and gas operators in Mexico have had no choice but to move forward with their investments and projects as they wait for a clear path forward concerning their role in the sector’s development. Lack of certainty has permeated the industry and with this in mind, Mexico Oil & Gas Summit presents “Operator Priorities: What Should Come Next and Why?” a presentation by Merlin Cochran, Director General of AMEXHI, considered the most important industry association for private oil and gas operators in Mexico.
Cochran began his presentation with a brief history of AMEXHI, an industry association established as a consequence of both the Energy Reform and CNH bidding rounds. Cochran said all major bidding round winners were members of AMEXHI and pointed out that 23 companies are contributing to national oil and gas production.
Cochran highlighted the success private operators have had in deepwater exploration. “At the moment, Mexico has 19 wells under exploration or already explored in the general offshore category, which is more than on the other side of the Gulf of Mexico.” He showed a map which demonstrated deepwater seismic information available between the Mexican and American sides of the Gulf of Mexico is equivalent and mentioned that US$40.7 billion in investment had been approved by CNH. Of this, 62 percent will be invested in exploration, 31 percent in development and 7 percent in evaluation.
Cochran broke down investment volumes and reserves into contracts and areas and also touched upon hot topics such as shale developments. “As soon as technology moves forward, we will have better possibilities to access unconventional resources.” Cochran made reference to AMEXHI’s 2020-2024 plan and told the audience that private operators remained stable and ready for the future, despite the murky waters the industry has been currently navigating in. He highlighted that certainty, sustainability and innovation will be the main points that the oil and gas industry will rely on for a promising future. “We respect the government's policies and hope it responds to our positive results.”