Page 13 - LatAmOil Week 44 2020

LatAmOil MEXICO LatAmOil

CNH data show Pemex’s priority

projects are missing targets

WORK on fields that Mexico’s national oil com- with drilling rigs. They also noted, though, that
pany (NOC) firm Pemex has prioritised for some of the delayed wells were slated to begin
development since last year has been progress- producing later this year.
ing much less quickly than expected and is fall- “The data [are] really worrying,” CNH com-
ing behind schedule, according to the National missioner Hector Moreira said following a web-
Hydrocarbons Commission (CNH). cast presentation, according to Reuters.
Data from CNH, which is Mexico’s national Landmark Mexican energy reform in
oil and gas regulator, show that Pemex executed 2013 brought to an end Pemex’s decades-long
investment programmes at only 16 of the 20 monopoly on production.
priority fields during the first eight months of Mexican President Andres Manuel Lopez
the year, according to a Reuters report. As of Obrador, who assumed power in 2018, has tried
the end of August, the company had only spent to improve Pemex’s fortunes by reversing the
around a third of the planned total of MXP51bn previous government’s strategy of opening the
($2.4bn), the news agency said. (It also noted energy sector up to private investors. His gov-
that 13 of the fields where investments were ernment decided to freeze farm-outs during his
made were located offshore, in the southern first year in office, and it has now cancelled seven
Gulf of Mexico.) Pemex tie-ups planned for next year.
Meanwhile, Reuters said, the CNH data also In March, the NOC said it hoped to cut
indicate that the NOC only met targets for well around $217mn in contract costs and $27mn
completion at 10 of the 20 sites between Janu- in administrative costs this year. The financially
ary and August, the news agency added. Pemex struggling firm is trying to maximise produc-
completed only 18 of the 62 wells planned dur- tion from its core producing areas to pay down
ing that period, it reported. debt. ™
Additionally, the company only informed
CNH of the launch of development work at one
new field during the eight-month period. Mexi-
co’s government had said previously that Pemex
would bring 20 new fields online each year up
until 2024, in line with efforts to reverse the
long-term decline in the country’s crude output.
Those efforts have flagged, as evidenced by
the fact that the NOC missed production targets
in the first eight months of the year. For example,
CNH data cited by Reuters show that the com-
pany had expected to see combined output from
11 of the 20 priority fields reach 184,000 barrels
per day in August. Actual yields came to roughly
84,000 bpd, though, it said.
CNH officials attributed Pemex’s disap-
pointing performance partly to the coronavirus
(COVID-19) pandemic, which caused problems The company has identified 20 fields as priority development targets (Photo: Pemex)

Auditor sees CFE overpaying for gas links

MEXICO’S national power provider CFE is set natural gas pipeline projects and associated gas
to spend almost $7bn more than expected on transportation services would be $6.836bn over
certain natural and associated gas transport pro- the projected level.
jects, according to a new report from the federal It also noted that CFE had been trying to
audit office, known as ASF. contain its expenditures and had entered into
In the report, ASF said that the utility’s negotiations with the developers with the aim
payments to private-sector companies for five of doing so.

Week 44 05•November•2020 www. NEWSBASE .com P13