Mexico's Pemex sees more tie-ups after first joint venture

Record ID: 76128

  • Title: Mexico's Pemex sees more tie-ups after first joint venture
  • Date: 6th December 2016
  • Summary: OFF THE COAST OF VERACRUZ, VERACRUZ, MEXICO (FILE) (REUTERS) VARIOUS OF OFF-SHORE PLATFORM TOWER AT PLATFORM EQUIPMENT AT PLATFORM EMPLOYEES AT PLATFORM VARIOUS OF EQUIPMENT AT PLATFORM EMPLOYEES LOOKING AT MONITORS EMPLOYEE AT CONTROLS VIEW OF UNDERGROUND EQUIPMENT THROUGH MONITOR
  • Embargoed: 21st December 2016 02:18
  • Keywords: Pemex BHP energy oil exploration Mexico joint venture
  • Location: MEXICO CITY, OFF THE COAST OF VERACRUZ, VERACRUZ, MEXICO
  • City: MEXICO CITY, OFF THE COAST OF VERACRUZ, VERACRUZ, MEXICO
  • Country: Mexico
  • Reuters ID: LVA0025BQVLFN
  • Aspect Ratio: 16:9
  • Story Text:Fresh off a historic tie-up with Australia's BHP Billiton Plc, Pemex is aiming for more than five additional joint ventures with other major producers over the next two years, the chief executive officer of the Mexican state oil firm told Reuters on Monday (December 05).
    BHP was chosen as Pemex's partner in its Trion deep water Gulf project earlier on Monday, the first time the ailing Mexican oil firm will jointly share the risks and rewards of a potentially lucrative development.
    "Today finalises this part of the energy reform. This will help with Pemex's expansion. This is a transcendental step under which Pemex can become a petroleum company for the 21st century," said Mexico's Energy Minister, Pedro Joaquin Coldwell.
    Hailing the Trion deal as a "milestone" for Mexico, Pemex CEO Jose Antonio Gonzalez defended the pursuit of costly and difficult deep water projects since the company can now rely on partners that have more experience and more capacity to invest in new developments.
    "So this is an important milestone for Pemex, for the country it is the first time in history that Pemex has a risk partnership with anyone," he said.
    The Pemex CEO said the Mexican company could learn from BHP.
    "We have a lot of experience in exploration in deep waters but not in production. So, we are going to learn how to develop the production of a field with BHP Billiton and we are happy that it is with them because they are one of the first deep water companies in the world," he added.
    Pemex already plans four shallow water and onshore tie-ups next year, and Pemex CEO Jose Antonio Gonzalez Anaya hopes touted ten by the end of the current Mexican presidential term in 2018.
    "More than that, more than 10. (Journalist: More than ten by the end of this presidential term?) Hopefully yes. I think that it is an interesting thing the oil and gas industry, that from somebody from the outside it is not evident but companies compete very fiercely but they also partner very deeply. And Pemex wasn't allowed to partner so now we are going to partner," said Gonzalez.
    Before a 2013 constitutional energy reform that opened the industry to private producers, Pemex had an oil and gas monopoly for Mexico's ample onshore and offshore basins.
    While oil export revenues have funded as much as 40 percent of the government's budget in the past, a two-year slump in oil prices have cut that contribution to less than a fifth today.
    Besides gaining a partner to develop Trion, Pemex also won rights, along with U.S. major Chevron Corp and Japan's Inpex Corp, to explore for oil in the third Perdido Fold Belt block up for auction, located just southwest of Trion.
    In both projects, Pemex will be a minority stakeholder.
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