Page 15 - LatAmOil Week 01 2021

LatAmOil MEXICO LatAmOil

Mexico issues new rules

restricting private fuel imports

NEW regulations have come into force in Mex- imports were less substantiated than usual.
ico restricting the volume of petroleum prod- Delays of this type have drawn complaints
ucts that private firms are allowed to import, as from Mexican shippers for a long time. How-
part of a wider campaign to make the country ever, criticism mounted during the pandemic,
less dependent on other countries for its fuel. as energy demand was falling at the same time
The new rules took effect in late December that fuel storage depots were becoming fuller.
after being issued by the Energy Secretariat In May, up to 15 cargoes waited to discharge for
(SENER). They only allow the government to weeks offshore in the port of Pajaritos, where
offer import permits with a term of five years, storage was full because of weak fuel demand
instead of the current term of 20 years, accord- during the pandemic, according to data from
ing to a Reuters report. oil analytics firm Vortexa.
The regulations are in line with efforts by Over the last five years, Pemex has lost
Mexican President Andres Manuel Lopez Obra- some of its market share as a result of landmark
dor to bring fuel imports to an end and make national energy market reforms introduced in
Mexico more energy-independent. They stem 2013-2014. Those reforms eliminated the com-
from a draft proposal that came under fire last pany’s monopoly over the refining sector, among
year, with Mexico’s national competition com- other major things. Lopez Obrador, who took
mission Cofece issuing a resolution saying that office in 2018, has indicated that he hopes to roll
limiting permits could deter investors, Reuters back as many of the changes as possible. ™
noted.
In the resolution, Cofece declared that the
measure would reaffirm the “dominant posi-
tion of Pemex,” the state-run oil and gas firm.
The anti-trust agency also warned, though, that
the plan “would seriously hamper ... free com-
petition in the commercialisation of petroleum
products.” Consumers could end up with fewer
supply options as a result, it added.
Last year, shippers complained that ship-
ments of refined products into Mexico by
companies other than Pemex were facing
delays caused by greater bureaucracy. They also
complained that the reasons for holding back The new regulations are likely to benefit Pemex (Photo: Informador)

SENER agrees to extend talks

on unitisation of Zama deposit

THE government of Mexico recently gave the December. But Tim Duncan, the CEO of Talos,
green light to an extension of talks between told Reuters shortly before the deadline that
state-run oil company Pemex and a private SENER had agreed to let the companies con-
consortium led by US-based Talos Energy over tinue negotiating for another 60 days, or until
Zama, a huge hydrocarbon deposit discovered March 25.
in 2017. Duncan expressed gratitude for the exten-
The country’s Energy Secretariat (SENER) sion, saying: “Continuing talks with Pemex
had previously instructed both parties to for- during the extended period represents the clear-
mulate an agreement to merge the licence area est and fastest route towards expedited first oil,
where the US firm made the find with an adja- which benefits all parties involved, including the
cent block assigned to Pemex before the end of government of Mexico.”

Week 01 07•January•2021 www. NEWSBASE .com P15