Page 6 - LatAmOil Week 39 2021

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)

NICARAGUA/COLOMBIA
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