Page 12 - LatAmOil Week 27

LatAmOil MEXICO LatAmOil

Some importers have reportedly turned to alter- because of weak fuel demand during the pan-
native delivery methods in the hope of avoiding demic. Two of these tankers – the Velos Fortuna
delays. One private-sector importer based in and Hafnia Andromeda, which were waiting
Mexico City has moved away from truck deliv- offshore for nearly two months – have recently
eries and has used rail instead to reduce transit offloaded, according to Vortexa.
time, Argus Media said. In May, Pemex said it intended to keep crude
Bureaucratic obstruction has been a source production levels steady in spite of the fall in
of frustration for Mexican petroleum prod- demand due to the coronavirus (COVID-19)
uct importers for a long time. But the problem outbreak and uncertainty over oil prices. Addi-
appears to have grown worse in recent weeks, tionally, the company ramped up diesel and
as fuel demand has fallen and storage facilities gasoline production and started sending more
have filled up. crude to its own domestic refineries. This put
One private importer said that customs even more pressure on storage facilities and also
delays had caused one waterborne cargo, most took market share from private refiners.
likely diesel, to be held up at the port of Tuxpan Pemex saw its share of Mexico’s fuel market
for one month. Meanwhile, data from oil analyt- decline following landmark national energy
ics firm Vortexa show that up to 15 cargoes had market reforms in 2014. That initiative caused
to wait offshore for weeks before discharging at the company to lose its monopoly over the refin-
the port of Pajaritos, as storage facilities were full ing sector. ™

CUBA
Sonangol makes advance payment

to Melbana Energy for Cuban project

AUSTRALIA’S Melbana Energy is moving exploration work at Block 9.
closer to finalising an agreement that will allow According to the statement, Sonangol is due
Sonangol, the national oil company (NOC) of to cover the remainder of Melbana’s costs later,
Angola, to join an upstream project in Cuba. once Cuba’s NOC Cupet formally approves the
In a statement dated July 8, Melbana said it farm-in deal. “Cupet has informally advised
had received its first payment from Sonangol [that] this transaction has been approved and is
under the farm-in agreement that the parties working towards completing formal documen-
signed in June.The Angolan company made this tation,” it said.
payment of €425,000 ($481,856) as an advance Andrew Purcell, Melbana’s executive chair-
against the AUD5mn ($3.49mn) in costs that man, described the Angolan NOC’s move as a
the Australian firm has already incurred during positive development.

Block 9 lies on Cuba’s northern coast (Image: Melbana Energy)

P12 www. NEWSBASE .com Week 27 09•July•2020