For a Sustained Growth in Oil Production Mexico’s New Government Will Need to Resume Bidding Rounds Sooner Rather Than Later

For a Sustained Growth in Oil Production Mexico’s New Government Will Need to Resume Bidding Rounds Sooner Rather Than Later

Following recent statements by Fluvio Ruiz Alarcon, a current advisor to Mexico’s president-elect Lopez Obrador team and former Pemex board member,

Adrian Lara, Senior Oil and Gas Analyst at GlobalData , a leading data and analytics company, offers his view on the impact on the upstream sector:

“Maintaining and resuming soon CNH’s upstream bidding rounds should be a pragmatic move for the new government. Pemex can directly award drilling contracts for onshore and shallow water, as promised recently by Lopez Obrador to service companies, but even if this is successful in increasing domestic production, this won’t be enough for reaching the 3.4 mmbd of oil production that the new government is setting as benchmark. It might not even be enough to revert a decline that is at 147 mbd from the end of Q2 2017 to the end of Q2 2018.

“In any case, Pemex’s best option is to combine the strategy of service contracts with the farm outs or partnerships that are an integral part of the energy reform. The previous rounds in the country have shown that private and foreign companies do participate and commit capital investment into future exploration and development. Even if Pemex’s investment budget is increased, private capital will still be needed to develop larger fields alone or in partnership with the NOC. Any review of the current contract models and terms should be aimed at complementing the strategy of strengthening Pemex.

Lara continues: “Indeed there have been mixed signals from the so-called transition team on […]



Trending News on PVDN

  • 10 Million Pesos Allocated for the Rehabilitation of Puerto Vallarta's Iconic Los Muertos Pier10 Million Pesos Allocated for the Rehabilitation of Puerto Vallarta’s Iconic Los Muertos Pier PUERTO VALLARTA (PVDN) - The Mayor of Puerto Vallarta, Luis Alberto Michel Rodríguez, recently toured Los Muertos Pier to supervise the ongoing rehabilitation work. This project, undertaken by the Secretary of Infrastructure and Public Works (SIOP) of the State Government, has been backed with an investment of 10 million pesos. Los Muertos Pier is one…
  • Expats Need to Be Honest, Mexico Isn't Safe (Opinion)Expats Need to Be Honest, Mexico Isn’t Safe (Opinion) PUERTO VALLARTA (PVDN) - Can you name any country that is dubbed safe, despite weekly discoveries of over 100 bags filled with human remains scattered across its lands or where international criminal organizations have infiltrated local governments from city council to mayor, governor, local and state police, the military, and the presidency? The answer, astonishingly,…
  • Missing LGBTIQ Activist, Rubén Michel Castro Guízar, Found Dead in Puerto VallartaMissing LGBTIQ Activist, Rubén Michel Castro Guízar, Found Dead in Puerto Vallarta Puerto Vallarta (PVDN) - A tragic ending to a mysterious disappearance, Rubén Michel Castro Guízar, a notable figure within the LGBTIQ and deaf communities of Puerto Vallarta, was found deceased on Monday. The grim discovery was made ten days after the 32-year-old's sudden disappearance following his participation in a local pride march. The deaf activist,…
  • Puerto Vallarta International Film Festival Kicks Off in StylePuerto Vallarta International Film Festival Kicks Off in Style PUERTO VALLARTA (PVDN) - The 23rd edition of the Puerto Vallarta International Film Festival (FICPV) has officially opened with an illustrious gala at the Dr. Juan Luis Cifuentes Lemus Auditorium, located in the Centro Universitario de la Costa (CUCosta). The festival, running from June 8th to 11th, showcases a diverse selection of films and brings…
  • FBI Issue Warning to American Timeshare Owners in Mexico: $40 Million Lost to Scams in 2022FBI Issue Warning to American Timeshare Owners in Mexico: $40 Million Lost to Scams in 2022 PUERTO VALLARTA (PVDN) - In a recent revelation, the United States embassy in Mexico, in collaboration with the Federal Bureau of Investigation (FBI), has issued a warning to American timeshare owners in Mexico. The advisory focuses on an emerging scam targeting this demographic via unsolicited phone calls or emails intending to rent their properties. In…
  • The Humble Origins of Puerto Vallarta: From Las Peñas to a Global Tourist DestinationThe Humble Origins of Puerto Vallarta: From Las Peñas to a Global Tourist Destination The Birthplace of Puerto Vallarta: Las Peñas Long before the town's transformation into a popular tourist destination, Puerto Vallarta, or as it was originally known, Las Peñas de Santa Maria de Guadalupe, began as a humble fishing village. Nestled between towering mountains and a sprawling sea, Las Peñas was home to only a handful of…
  • Massive Infrastructure Rehabilitation Underway in Puerto VallartaMassive Infrastructure Rehabilitation Underway in Puerto Vallarta PUERTO VALLARTA (PVDN) - The municipal government of Puerto Vallarta is making strides toward bettering the infrastructure of the city. Focused efforts on the rehabilitation of streets, rural roads, and the cleanup of ditches, grates, and sewers are enhancing the quality of life for Vallarta's residents. Crews from the Public Works Directorate have been actively…
  • Eight Call Center Employees Suspected in Cartel Scam Targeting Americans Confirmed DeadEight Call Center Employees Suspected in Cartel Scam Targeting Americans Confirmed Dead Eight young employees of a call center in Mexico were confirmed dead Tuesday, victims of a violent drug cartel involved in a real estate scam targeting Americans. The tragic news comes following reports from family members who had reported the youths missing after failing to return from work. A Grisly Discovery and the Unmasking of…
  • Puerto Vallarta Sees Post-Pandemic Tourism Surge with Over 3 Million Air PassengersPuerto Vallarta Sees Post-Pandemic Tourism Surge with Over 3 Million Air Passengers PUERTO VALLARTA (PVDN) - In a remarkable post-pandemic rebound, Puerto Vallarta has welcomed more than 3 million passengers by air this year, nearly half a million of whom arrived in May alone. Passenger Traffic on the Rise According to data from the Grupo Aeroportuario del Pacífico (GAP), which manages the air terminal at this tourist…
  • Popocatépetl Volcano Activity Continues; June 5, 2023 Monitoring UpdatePopocatépetl Volcano Activity Continues; June 5, 2023 Monitoring Update PUERTO VALLARTA (PVDN) - In the latest updates from the monitoring systems of the Popocatépetl volcano, 108 exhalations were recorded in the last 24 hours, accompanied by water vapor, volcanic gases, and minor quantities of ash. The monitoring systems also registered 51 minutes of tremor segments, ranging from low to moderate amplitude and high frequency.…

Compare Listings

Title Price Status Type Area Purpose Bedrooms Bathrooms