- Title: Mexico's Pemex seeks oil projects in Americas
- Date: 9th August 2017
- Summary: OFFSHORE TAMAULIPAS, MEXICO (FILE) (REUTERS) GENERAL VIEW OF OFFSHORE PLATFORM EMPLOYEE WORKING ON PLATFORM EMPLOYEE WORKING WITH APPARATUS AT PLATFORM MACHINERY AT PLATFORM MACHINERY IN USE AT PLATFORM EMPLOYEE ON DUTY AT PLATFORM MONITOR SHOWING ACTIVITY ON PLATFORM EMPLOYEES IN CONTROL ROOM TOWER AT PLATFORM EMPLOYEES WORKING ON PLATFORM DECK OF PLATFORM
- Embargoed: 23rd August 2017 23:38
- Keywords: Pemex Mexico oil projects Americas Reuters Summit
- Location: MEXICO CITY AND OFFSHORE TAMAULIPAS, MEXICO
- City: MEXICO CITY AND OFFSHORE TAMAULIPAS, MEXICO
- Country: Mexico
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA0026TFR1OJ
- Aspect Ratio: 16:9
- Story Text: Mexico's Pemex is looking for oil projects in the United States, Brazil, Colombia and Argentina to keep up output after an energy reform that means it is sharing more domestic production, a top executive from the state-run oil company said on Wednesday (August 09).
Exploration chief Jose Antonio Escalera mentioned Argentina's giant Vaca Muerta shale play as an interesting project where Pemex could jump into a partnership, adding that projects in the USA and Colombia could come into play. Pemex also plans to ramp up partnerships for blocks that require large investment, technology or expertise. It sees investment in oil projects overseas as a way to compensate for lower domestic output by adding reserves and external production to its portfolio while gaining know-how.
Pemex's oil output has declined since 2004. It expects to produce between 1.9 million and 2 million barrels per day (bpd) in 2018 and achieve a net output of 2 million bpd by 2027, after subtracting its partners' farmout production. Debt woes and labour liabilities have also hampered the company, with executives seeing greater international activity as a way out.
The company is in talks with Mexico's oil regulators to get a two-year extension for reaching the minimum investment required for more than 100 domestic blocks assigned in 2014 as part of the reform, after low oil prices crimped its ability to invest. If the parties do not reach an agreement, Pemex could lose a portion of the blocks it got three years ago for exploration work. - Copyright Holder: FILE REUTERS (CAN SELL)
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