Mexican Oil Regulator Approves Onshore JV Projects

Mexico's first two onshore oil and gas projects to be developed by joint ventures between state-owned Pemex and new partners were approved by regulators on Friday.

 

The auctions to pick Pemex's partners for the two extraction projects covering the Cardenas-Mora and Ogarrio fields, both located in southern Tabasco state, will take place on Oct. 4.

 

In both tie-ups, Pemex will have a 50 percent stake, while the partners will have the remaining half and will be designated as the operators of the projects.

 

Both projects feature existing infrastructure due to past Pemex work in the areas, as well as ongoing production.

 

Cardenas-Mora features output of about 7,200 barrels per day (bpd) of crude oil, while Ogarrio produces about 6,600 bpd.

 

In a bid to make the projects more attractive to potential investors, winning bidders will immediately be able to market their part of the projects' production and half of certain assets like existing wells and pipelines will be transferred to the operator.

 

The National Hydrocarbons Commission, Mexico's oil regulator, has previously approved both deep water and shallow water joint ventures for Pemex, with the first one covering the company's Trion deep water field won by Australian mining and oil giant BHP Billiton (BHPLF) late last year.

 

A landmark energy overhaul finalized in 2014, which ended Pemex's monopoly over the production of oil and gas, permits the company to enter into first-ever joint ventures as a means to share risks and reverse a prolonged slump in crude output.


(Reporting by David Alire Garcia; Editing by Leslie Adler)