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The Mexican government typically exe- cutes the hedge in a series of transactions with US-based banks and international oil majors between May and August of each year. It has been late to start the process this year, owing to creditors’ concerns about changing the formula in light of the new IMO standards. As a result, it may now be under pressure to move quickly, since international fuel prices are likely to show distortions ahead of the phase-out of HSFO.
“ ey’re going to have to nish the deal by
latesummerorearlyfall,”anunnamedindustry source told Reuters last week. Mexico has “basi- cally about 60 days before the IMO e ects really start” to become evident on world fuel markets, he said.
Last year, Mexico bought $1.23bn worth of put options to hedge its crude oil sales at an average price of $55 per barrel. It conducted its hedging programme separately from Pemex, the national oil company (NOC), which devises its own formulae for this purpose.
TRINIDAD AND TOBAGO
BP subsidiary says Cassia Compression project is proceeding on schedule
BP Trinidad & Tobago (BPTT) has reported that its campaign to improve natural gas recov- ery rates at the Greater Cassia Area through the construction of a new o shore platform remains on track.
e company said on July 16 that the initia- tive, known as the Cassia Compression project, was moving forward on schedule. As a result, BPTT will be able to bring the Cassia C plat- form on stream in the third quarter of 2021 as scheduled, it said in a statement.
In the meantime, it said, work on the main components of the platform continues. Trini- dad Offshore Fabrication Co. (TOFCO) has completed 43% of the structure’s jacket and bridge landing frame, while a shipyard in the Mexican port of Altamira has nished 23% of the topside and bridge, it explained.
BPTT will use the Cassia C platform to com- press gas extracted from low-pressure reservoirs in the Greater Cassia Area. It will then send the
gas to Cassia B, an adjacent structure, for export. Both platforms are located o the south-eastern coast of Trinidad and Tobago.
e new platform will be able to handle 1.2bn cubic feet per day (nearly 34mn cubic metres per day, equivalent to 12.41bn cubic metres per year) of gas.
These volumes will help BPTT uphold its supply commitments in the long term, accord- ing to Michael Daniel, the company’s project manager. As a result, the project will go a long way towards ensuring the company’s ability to meet contractual obligations, Daniel told Trini- dad and Tobago Newsday.
He also pointed out that BPTT’s decision to award TOFCO the contract for construction of certain parts of the platform was in line with ongoing e orts to include local content. “Local fabrication has been a key feature of [the com- pany’s] major projects since the construction of Cannonball [in 2005],” he remarked.
BPTT
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