- Title: Mexico's Pemex seeks oil projects in Americas
- Date: 9th August 2017
- Summary: MEXICO CITY, MEXICO (AUGUST 09, 2017) (REUTERS) GENERAL VIEW OF PEMEX TOWER REUTERS JOURNALISTS AND PEMEX OFFICIALS TALKING IN OFFICE REUTERS JOURNALIST TALKING TO PEMEX EXPLORATION CHIEF JOSE ANTONIO ESCALERA ESCALERA SITTING DOWN FOR INTERVIEW (SOUNDBITE) (Spanish) PEMEX EXPLORATION CHIEF, JOSE ANTONIO ESCALERA, SAYING: "Today, Pemex is also looking for opportunities outside of Mexico. We are looking for opportunities in the United States, we have seen things in Colombia and Brazil. Our focus is to start to see things in the Americas, bit by bit in other countries. We will start slowly and it is moving but our objective is to keep up this focus." GENERAL VIEW OF INTERVIEW (SOUNDBITE) (Spanish) PEMEX EXPLORATION CHIEF, JOSE ANTONIO ESCALERA, SAYING: "We need to look for this because there is an issue here that we are in debt, we have working liabilities etc. I'm not a financial guy, that is a question for our director, but without a doubt we need to maintain a significant production profile so as to shake off these issues of debt, work liabilities etc." REUTERS JOURNALISTS DURING INTERVIEW GENERAL VIEW OF INTERVIEW (SOUNDBITE) (Spanish) PEMEX EXPLORATION CHIEF, JOSE ANTONIO ESCALERA, SAYING: "With them (Mexico oil regulators) we are considering that there are other reasons for the lack of attention from Petroleos Mexicanos (Pemex) in the compliance of minimum standards. There are economic reasons, financial reasons, reasons concerning the price of petrol etc. So, we are thinking strictly that they (regulators) will not take this away, they will give us a two year (extension). If we are negotiating with them then it is a decision that the state will make, we are optimistic that we will have an additional two-year period." ESCALERA SAYING BYE TO JOURNALISTS AT END OF INTERVIEW
- 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: LVA0016TFR1OJ
- 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: REUTERS
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