Page 14 - LatAmOil Week 44 2020

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These talks ended in July 2019, when the parties made revisions to four of the five contracts in
agreed to revise their contracts, ASF said. How- August 2019, following negotiations with the
ever, these changes only resulted in short-term developers.
cost reductions, it stated. At that time, Lopez Obrador said that the
The contracts in question involved three changes would allow CFE to cut its projected
Mexican companies – Fermaca, Grupo Carso costs down by $4.5bn. ASD’s report asserted,
and IEnova. CFE had tasked Fermaca with though, that the reduction would only occur
building the Laguna-Aguascalientes and Villa during the first 25 years of the pipelines’ oper-
de Reyes-Aguascalientes-Guadalajara gas pipe- ating life.
lines; it also assigned the Samalayuca-Sasabe It also pointed out that the power provider
pipeline project to Grupo Carso. Meanwhile, had extended the term of four of the contracts
the utility contracted IEnova, the Mexican sub- by 10 years. These extra years are likely to gener-
sidiary of US-based Sempra Energy, to build the ate additional expenses that outweigh the earlier
Guaymas-el Oro pipeline. It also assigned the savings, it said.
Sur de Texas-Tuxpan pipeline project to IEnova ASF also said it was not clear whether CFE’s
and TC Energy. management had divulged full details of the new
CFE sought to revise these contracts at the deal to its own board of directors. Members of
behest of Mexican President Andres Manuel the board voted to approve the revised gas con-
Lopez Obrador, who insisted that the original tracts, but they may not have been aware of all
terms were unfavourable for the country. It then the changes, the agency said in its report. ™

TRINIDAD AND TOBAGO
Port of Spain rejects offer

for Petrotrin oil refinery

THE government of Trinidad and Tobago purchase price financing and liens on the refin-
revealed last week that it had decided not to ery. However, he did not elaborate, saying that
accept a bid from Patriotic Energies and Tech- the matter was subject to a non-disclosure
nologies Co., a local firm owned by the Oilfields agreement.
Workers’ Trade Union (OWTU), for the moth- The parties have been trying to resolve their
balled Petrotrin refinery. differences, but to no avail, Khan said during a
According to Energy Minister Franklin virtual press briefing. “After much to-ing and
Khan, the government took this stance because fro-ing, exchange of letters and a series of meet-
Patriotic’s offer did not include an adequate ings involved with the negotiating team, the
response to the challenges facing the plant. Honourable Prime Minister [Keith Rowley]
He explained that Port of Spain had not been and the Honourable Minister of Finance [Colm
satisfied with the company’s approach to envi- Imbert] gave the parties an October 31 deadline
ronmental, permitting and taxation issues – to reach an agreement on the sale of the cap-
especially with respect to restarting financing, tioned assets,” Khan said.

The Petrotrin refinery has a capacity of 160,000 bpd (Photo: File)

P14 www. NEWSBASE .com Week 44 05•November•2020