Page 12 - LatAmOil Week 34

LatAmOil MEXICO LatAmOil

The company’s licence areas are in Chiapas and Veracruz (Image: Renaissance Oil)

This, in addition to the impact of the COVID- hope of securing funds to cover royalty pay-
19 pandemic, has resulted in the deferral of ments, but its efforts have yielded no fruit thus
royalty payments due since September 2019,” it far, it added.
explained. Renaissance went on to say that it was con-
This development has the potential to dis- tinuing to work with its partner Lukoil (Russia)
rupt work in the blocks, the statement added. to draw up a development plan for Amatitlán,
If Renaissance fails to make obligatory royalty an onshore block in Veracruz State. Both com-
payments, it explained, it could incur financial panies want a plan that will facilitate the com-
penalties and jeopardise the project’s standing mercialisation of the block’s prospective zones,
with Mexican authorities. especially the Upper Jurassic formations, and
The company’s management team has been also allow for transition from a service con-
holding discussions with potential lenders in tract to a different type of deal that will be more
Mexico, North America and Europe with the “mutually beneficial,” the statement said. ™

Mexico says Sempra must build new

gas export facility to secure permit

THE Mexican government has reportedly
asked IEnova, the local unit of US-based Sem-
pra Energy, to build another export facility at the
Energía Costa Azul LNG facility to help sell off
excess natural gas.
Three sources familiar with the matter told
Reuters last week that Mexican authorities had
made this plan a prerequisite for authorising
Energía Costa Azul LNG permission to export
gas. They said the government set this condition
because it was keen to unload surplus gas capac-
ity before permitting the launch of LNG exports.
No further details were available, though the
sources stressed the sensitive nature of negoti-
ations between IEnova and the Mexican gov-
ernment. If the Sempra subsidiary obtains the IEnova’s LNG plant will be built at an existing terminal (Image: Sempra)
export permit, it will be the first private com-
pany to do so in Mexico. north-western port of Ensenada in Baja Cali-
IEnova is looking to build a new gas lique- fornia. The import facility became operational
faction facility on the basis of its existing regas- in 2008 and is capable of regasifying up to 1bn
ification terminal at Topolobampo, near the cubic feet (28.32mn cubic metres) per day of gas.

P12 www. NEWSBASE .com Week 34 27•August•2020