Page 8 - LatAmOil Week 09 2023

LatAmOil MEXICO LatAmOil

Pemex’s CEO Octavio Romero Oropeza temporarily, a move that would have caused
acknowledged the problem in a video message Pemex to fall further behind production targets,
last November and promised that the NOC they explained.
would start processing 300 mmcf (8.5 mcm) of Meanwhile, inadequate infrastructure is part
gas per day from Ixachi rather than burning it. of a bigger problem – namely, the nearly 50%
In the message, which was shared on Twitter, decline in Pemex’s production over the last 20
Romero and other members of Pemex’s execu- years. The NOC is by far the largest contribu-
tive team joined representatives of Nuvoil, the tor to state coffers in a country where millions
contractor that is developing the Papan plant, live in poverty, so its finances are a subject of
standing in hard hats at the facility and explain- great interest to the government. The com-
ing how they would stop the flaring by mid-Jan- pany has repeatedly fallen short of its gas pro-
uary of 2023. However, Reuters said on February duction targets, blaming its missteps on faulty
28, citing two sources at Pemex and the Secretar- infrastructure.
iat of Energy (SENER), that no significant steps Pemex’s updated business plan for 2023
had been taken to halt the flaring at Ixachi since to 2027, released in December, does reiter-
then. ate promises to reduce emissions. However,
This failure to halt the gas burns puts the it focuses more on oil and gas production, as
NOC in violation of Mexican laws governing well as refining. Some industry observers have
the reporting of and responses to environmen- argued, though, that if the company does not
tal incidents. Two senior company sources told take concrete steps to rein in gas flaring and
Reuters last November, though, that Pemex comply with regulatory limits to avoid further
would rather pay fines than resolve the problems harm to the environment, it could lose access to
that necessitate gas flaring. commercial financing. ™
The news agency’s three sources at SENER
and Pemex noted on February 28 that the
infrastructure needed to capture, process and
transport or store flared gas from Ixachi should
have been in place before 2020, according to the
company’s business development plans. But in
practice, they said, the NOC has prioritised the
production of condensate – a liquid hydrocar-
bon that is similar to a very light crude oil that
can be found in the seams of rocks along with
the gas – rather than put the necessary facilities
in place. The infrastructure could not be com-
pleted without halting condensate production The Ixachi field was discovered within the Perdiz area in 2017 (Image: TGS)

VENEZUELA
Venezuelan crude output rising but could

run up against logistical constraints soon

VENEZUELA’S oil output has risen since the barrels per day – up from 40,000 bpd before the
US government began easing trade sanctions granting of the sanctions waiver, known as Gen-
late last year, but it may not be able to go much eral Law 41 (GL 41) – and aims to push yields up
higher due to logistical and structural con- to 200,000 bpd later this year, the source said.
straints on output capacity, according to a report Chevron is now working to bring exports
from Argus Media. up to 140,000 bpd of crude from Venezuela in
Thus far, the main beneficiary of the US February, an unnamed source told Argus Media.
policy change has been the US major Chevron, This would represent a rise of almost 50% on
which was granted a partial waiver from sanc- January levels, the source said.
tions in late November. The company returned It is not clear whether the company can meet
to the Venezuelan oil market following the pol- this goal, though. According to Vortexa data
icy change and has resumed shipments of Ven- posted by Argus Media, Venezuela’s government
ezuelan oil, loading tankers with stored crude has said it expects total exports to reach 4mn
produced years ago by its joint ventures with bpd in February, up from 2.4mn bpd in Janu-
the national oil company (NOC) PdVSA. It has ary, and Chevron’s 140,000 bpd will account for
also increased upstream production to 110,000 most of the February total, or 3.92mn barrels.

P8 www. NEWSBASE .com Week 09 01•March•2023