Page 15 - LatAmOil Week 46

LatAmOil MEXICO LatAmOil

Investors focus on Mexican

deepwater projects in Q3-2020

DEEPWATER exploration accounted for nearly during the first six months of the year, owing to
half of all investments made in Mexico’s oil the coronavirus (COVID-19) pandemic and an
and gas sector in the third quarter of the year, overall drop in global energy demand.
according to the national oil and gas regulator. These struggles were evident in the fact that
Deepwater and ultra-deepwater sites accounted Mexico’s crude oil production hit a record low of
for no less than 45% of new investments and 1.605mn barrels per day (bpd) in July, the lowest
80% of new resources cleared for exploration in monthly figure recorded in nearly half a century.
the July-September period, according to newly CNH data show that Pemex accounted for most
released data from the National Hydrocarbons of the total, turning out 1.548mn bpd (the lowest
Commission (CNH). monthly figure posted since November 1979),
The biggest investment projects author- while private companies extracted another
ised during the third quarter were Xochicalco, 57,000 bpd.
which is being developed by Royal Dutch Shell The downturn does not appear to be over yet.
(UK/Netherlands), and Ameyalli, operated by According to CNH, Mexican oil production is
China National Offshore Oil Corp. (CNOOC). heading towards some of its lowest output levels
These projects attracted $117.2mn and $91.6mn since the 1970s. Between January and Septem-
respectively, according to CNH. Ameyalli holds ber, daily production rates dropped by nearly
1.318bn barrels of oil equivalent, while Xochi- 7%, CNH data indicate. ™
calco holds 562mn boe, the commission’s data
showed.
Ameyalli and Xochicalco – along with
Chimalli, another deepwater site operated by
Shell – accounted for 80% of the prospective
resources authorised for exploration during the
third quarter, CNH said. It also noted that a total
of 33 new wells had been drilled during the third
quarter, including 14 that were approved as new
wells. Of the total, 30 wells were drilled by the
national oil company (NOC) Pemex, it added.
Private players operating in Mexico are
focusing on deepwater exploration, as Pemex
turns its sights to less complicated shallow-wa-
ter projects. They are doing so as the country’s
oil and gas industry struggles to recover from
the operational and financial setbacks it suffered Shell is the operator of the Ameyalli and Chimalli fields (Photo: Shell)

VENEZUEL A
US extends Venezuelan waiver for

Chevron, oilfield service companies

THE US Treasury Department’s Office of For- an exemption from the relevant trade restric-
eign Assets Control (OFAC) has extended the tions until December 1, 2020, provided that
waiver granted to Chevron and three oilfield the US-based companies used the time to
service providers from sanctions on the Vene- “wind down” their operations in Venezuela. On
zuelan oil industry. November 17, though, it said in a statement that
OFAC had said earlier this year that it was it had pushed the expiration date of the waiver,
granting Chevron, Baker Hughes, Halliburton, which is known as General Licence 8G, back to
Schlumberger and Weatherford International June 3, 2021.

Week 46 19•November•2020 www. NEWSBASE .com P15