Page 6 - LatAmOil Week 49 2022

LatAmOil MEXICO LatAmOil

SENER documents show Mexico sought to

block publication of stricter flaring laws

MEXICO’S Secretariat of Energy (SENER) regulator, the National Hydrocarbons Com-
attempted to block the publication of stricter mission (CNH), to hold Pemex accountable.
rules on natural gas flaring earlier this year, The energy regulator is tasked with evaluating
according to documents obtained by Reuters exploration and production plans for all com-
after filing a freedom of information request. panies while remaining politically independent
The documents, which dated back to Febru- and unbiased.
ary 17 and June 17 of this year, revealed that the Prior to its attempt to block stricter flar-
Mexican government had attempted to block ing regulations, the Mexican government had
the publication of stricter rules in the nation’s announced its pledge to cut greenhouse gas
official gazette. It appears to have done so in a (GHG) emissions, particularly flaring from oil-
bid to shield the national oil company (NOC) fields. Pemex made the same commitment. ™
Pemex from what might be “irreparable losses”
should such regulations come into effect, Reu-
ters said.
The first letter included in the documents
obtained by the news agency, dated February
17, was sent by a senior ministry official – Jorge
Arevalo, SENER’s director general of explora-
tion and production. In this document, Arevalo
requested the gazette not to move forward with
publication of the tighter flaring rules.
According to him, guarding Pemex from
scrutiny was critical so that the state-owned
company could continue to be used as “a lever
for national development.”
The rules in question are aimed at regulat-
ing how companies are held accountable for gas
that comes to the surface as a byproduct of their
oil exploration and production activities. Since
they are tighter, the regulations would make it
more challenging for companies to justify flar-
ing while also increasing the oversight of Mexi-
co’s independent regulator.
While the tougher flaring rules did come into
effect on June 23 of this year, SENER’s attempt to
prevent the publishing of such rules exhibits the
challenge faced by Mexico’s independent energy SENER has sought to guard Pemex from scrutiny over gas flaring (Photo: IEA)

CNH authorises Repsol to withdraw

from two blocks offshore Tamaulipas

MEXICO’S National Hydrocarbons Commis- it had authorised the Spanish firm’s request to
sion (CNH) has given Repsol (Spain) a green quit the licence areas, for which it signed pro-
light to begin the process of withdrawing from duction-sharing contracts (PSCs) in 2018. The
exploration contracts for Area 5 and Area 12, statement did not divulge Repsol’s reasons for
two sites in the Burgos basin off the coast of quitting the project, but Reuters quoted a reg-
Tamaulipas State. ulatory source as saying that the company had
CNH said in a statement on December 2 that not discovered any hydrocarbons at the blocks.

P6 www. NEWSBASE .com Week 49 07•December•2022