15/12/2016

Mexico Eyes Higher Oil Output Than Venezuela, Brazil | OilPrice.com

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Mexico Eyes Higher Oil Output Than

Venezuela, Brazil
By Irina Slav - Dec 07, 2016, 5:32 PM CST

Mexico plans to increase its crude oil production substantially, overtaking both Venezuela
and Brazil if its plans work out. This has emerged after earlier this week, the country awarded
nine major drilling contracts to international bidders for elds in the Gulf of Mexico.
Venezuela currently produces around 2 million bpd, which could drop to 1.6 million bpd next
year. Brazil pumped 2.6 million bpd in October. When commercial production starts at the
nine new elds, Mexicos National Hydrocarbons Commission expects the combined output
from them to reach 900,000 bpd, adding to the countrys current rate of some 2 million bpd.
One of the elds that will be developed in the deepwater section of the Mexican shelf, part of
the Trion block, was awarded to Australias BHP Billiton, one of the worlds top three miners,
which has been expanding its oil and gas operations recently. This, as the Wall Street Journal
reports, made it the rst foreign company to join Pemex in the development of an already
operating oil eld.
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Mexico Eyes Higher Oil Output Than Venezuela, Brazil | OilPrice.com

Chevron, BP, Exxon, and the China National O shore Oil Corp. were also among the winners
in the tender. CNOOC won the rights to drill at three elds; Statoil, BP, and Total together will
develop another two blocks; and the rest will be developed by POC Carigali, a unit of
Malaysias Petronas, in partnership with Mexicos rst private oil and gas company, Sierra,
along with U.S. Murphy Oil and UK-based Ophir Energy.
Related:Kuwait Calls For Meeting To Enforce OPEC Cut In Q1 2017
Two blocks remained unawarded, but nevertheless, the results of the tender were
considered a bigger success than initially expected by the organizers. Investments in the
blocks could reach US$40 billion.
The tender also marks a milestone in Mexicos liberalization of the energy sector, which
began in 2013 with the aim of making better use of the countrys mineral resources by
removing Pemex from its monopoly position and inviting outside investments in the industry.
Mexico is currently the fourth-largest oil producer in the Americas, according to the EIA,
behind the US, Canada, and Brazil.
By Irina Slav for Oilprice.com
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gulagPittsburgh on December 08 2016 said:

There goes the Venezuelan plan to increase oil prices by the recent deal of OPEC and Russia to cut
back production. Mexico is increasing production by breaking out of old policy of doing it all in-house.
Now will be bringing in international oil rms.

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