Talos Suspends Litigation, Vitol Complies with Government

Talos Energy announced it will pause litigation proceedings as talks with the Mexico Government over the Zama field progress in a positive manner, while Vitol finally delivered the names of the public officials who received bribes, opening up the possibility of the company’s return to the Mexican market. 

Here are this week’s biggest stories in Oil and Gas!

Mexico:

Vitol Hands Over Names of Officials Who Received Bribes

After 17 months, the Mexican episode of the Vitol corruption scandal is coming to a close as the Dutch energy giant finally handed over the names of public officials who received bribes to the government of President López Obrador. 

Talos Halts Legal Proceedings Against Mexican Government

US-based oil producer Talos Energy has suspended arbitration proceedings brought against the Mexican government following the July 2021 ruling by SENER, which named PEMEX operator of the lucrative Zama shallow water oil field originally discovered by Talos. Talks are expected to continue over the coming weeks as Talos expresses optimism a deal can be reached granting them greater participation in the prolific field.

PEMEX Cuts Fuel Supply to Service Stations

The downstream sector is facing uncertainty due to unexplained supply issues coming from PEMEX, causing difficulties that have even led to the closure of some service stations across the country. The problem has been observed since March 2022 but has worsened during the past few days in the north of the country, especially in Nuevo Leon. AMPES informed that currently around 100 stations are closed throughout the country due to a lack of product to sell.

Sur de Texas Pipeline Exports Abundant Natural Gas to Mexico

The Sur de Texas Pipeline transported 15 percent of Mexico’s total pipeline natural gas imports in 2021. The 770km offshore line moves natural gas from the Texas border town Brownsville to industrial and energy markets in the eastern and central regions of Mexico.

IMP to Strengthen National Refinery System

The government’s long quest to achieve energy sovereignty within the next few years has led to different strategies, among them the reinvigoration of the national refining system (SNR) through the rehabilitation of the six working oil refineries in the country, in addition to the acquisition of the Deer Park refinery in January 2022 and the construction of Dos Bocas in Tabasco.

International News:

Saudi Arabia Says It Has Done All It Can for the Oil Market

Saudi Arabia’s foreign minister said there is nothing more the kingdom can do to tame oil markets, implying that the world’s biggest crude exporter has no plan to accelerate its gradual production increases.

Peru Sues Repsol for $4.5 Billion After Oil Spill

Repsol said events were beyond its control and argues it merely owes compensation of about US$150 million after a major remediation effort.

Petronas Plans Pioneering Offshore Exploration Program in Brazil

The Malaysian NOC is planning to spud the Foca-1 well in 2023 in the Campos basin, its initial offshore exploration well in Brazil.

Venezuelan Investors Meet in Davos as US Weighs Sanctions

Venezuelan creditors are holding a rare meeting in Davos next week to discuss potential opportunities in the oil sector amid increasing optimism for investment in the country, as the US considers easing some sanctions.