Pemex plans to retain projects through reform

Pemex15 December 2013, News Wires – Pemex aims to keep all of its current oil and gas developments through the initial allocation of operating rights scheduled for the first half of 2014, chief executive Emilio Lozoya said on Friday according to a report.

The allocation will be one of the first steps after Thursday’s congressional approval of a sweeping energy overhaul that aims to lure major investment and boost oil and gas output in Latin America’s second-biggest economy, Reuters reported.

“Clearly, everything we have in production as well as areas where we’ve undertaken exploration and seismic studies and where we know that there’s major hydrocarbon potential, we will also ask to keep those areas,” Lozoya told Reuters.

The so-called “round zero” gives Pemex first rights to explore and produce crude at the country’s onshore and offshore fields, either by itself or in association with other companies.

The proposal leaves Mexico with sovereign ownership of its reserves. But it lays out the framework for an independent regulatory system and allows a range of different contract models for foreign players.

Upstream previously covered Mexico’s historic vote and broke down the bill’s provisions in detail, including its removal of Pemex union board seats.

This Friday’s print edition provides a historical perspective and profiles the country’s ongoing push into deep waters.


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