Page 6 - LatAmOil Week 39 2021
P. 6

LatAmOil                                          MEXICO                                            LatAmOil

       CNH members raise eyebrows at

       Pemex’s failure to drill at Coyula

                         MEMBERS of Mexico’s National Hydrocar-  “The total tax rate Pemex pays in this pro-
                         bons Commission (CNH) have voiced concerns   ject is well above 90%,” Moreira said. He was
                         about state-owned Pemex’s failure to uphold   apparently referring to CNH data showing that
                         previous pledges to invest in Coyula, an onshore   Coyula’s value after taxes was just $36mn, as
                         oil-bearing block in Veracruz State.  even development costs are slated to reach $4bn.
                           The issue came up for discussion last week,   Mexico’s government should consider adopt-
                         when the national oil company (NOC) pre-  ing a new taxation regime that encourages pro-
                         sented its new development plan for the field   duction, he added.
                         to CNH. The commission’s members did vote   Meanwhile, Joint Commissioner Nestor
                         on September 23 to approve the company’s   Martinez raised questions about the term of
                         proposal, which called for the drilling of 1,420   Pemex’s contract for Coyula. In light of the fact
                         development wells to recover 54mn barrels of   that the productive life of the field is set to extend
                         crude oil. However, Commissioner Alma Amer-  beyond the end of the NOC’s contract, he said,
                         ica Porres Luna drew attention to the fact that   Mexico’s Secretariat of Energy (SENER) may
                         it was broadly similar to the plan submitted six   need to take another look at the rules governing
                         years ago, which envisioned the drilling of 1,229   the length of contracts. ™
                         wells. Since 2015, she noted, Pemex has drilled
                         just six wells, rather than the 1,229 promised.
                           Porres Luna also said she wanted CNH to
                         take action to ensure that investors did a better
                         job of upholding their commitments. “It is diffi-
                         cult to reject a plan that promises so much activ-
                         ity and so much production, but the company’s
                         non-compliance is a problem,” she remarked.
                           Joint Commissioner Hector Moreira also
                         expressed dissatisfaction with Pemex’s failure to
                         push forward with development work at Coyula
                         over the last six years. He speculated, though,
                         that high tax rates might be discouraging the
                         NOC from investing in the field.             The Coyula onshore oilfield is located in Veracruz state (Image: CNH)

       Colombia dismisses Nicaragua’s

       claims over maritime border dispute

                         LAWYERS working for Colombia have dis-  2012 ruling by the ICJ, the report added. That
                         missed Nicaragua’s claims before the Interna-  earlier ruling demarcated Caribbean waters in
                         tional Court of Justice (ICJ), saying that Bogota   favour of Nicaragua, thereby reducing the size
                         does respect a ruling the same court made in   of Colombia’s offshore zone.
                         2012 on maritime boundaries in the western   It also increased Nicaragua’s continental
                         Caribbean.                           shelf and exclusive economic zone (EEZ) in the
                           “All of Nicaragua’s claims are unsubstantiated   Caribbean, thereby giving the Central Amer-
                         and artificial. They are founded on words, not   ican country access to underwater oil and gas
                         actions,” lawyer Manuel Jose Cepeda was quoted   deposits.
                         as saying by Reuters.                  Nicaragua responded to the Colombian
                           Lawyers working on behalf of Nicaragua   side’s criticisms by accusing the latter of cher-
                         argued last week that Colombia had violated a   ry-picking from the 2012 judgment.

       P6                                       www. NEWSBASE .com                      Week 39   30•September•2021
   1   2   3   4   5   6   7   8   9   10   11