4 October 2012—Mexico’s new executive government is planning new legislation for early next year to boost its petroleum production and growth prospects, Dow Jones Newswires reported.
The country is considering the renewal of its flexible credit line with the International Monetary Fund (IMF), president-elect Enrique Pena Nieto’s transition team said. The IMF approved a 2-year, USD 72 billion credit line for Mexico last year. The new energy legislation is aimed at further opening Mexico’s oil and gas sector to private sector money and technology. There are no plans to privatize Petroleos Mexicanos (Pemex), but the new legislation would let the private sector partner with the state-owned company.
Mexico’s production peaked at 3.4 million B/D in 2004, and production at its giant Cantarell crude deposit has declined from about 2 million B/D in 2004 to about 400,000 B/D today. The US Energy Information Administration estimates that Mexico’s oil reserves were about 11.7 billion bbl at the end of last year. Pemex reported about 13.9 billion bbl of proven crude reserves at the end of 2010.
In response to the country’s production decline, industry reforms in Mexico in 2008 allowed international operators to bid for private oil production contracts for the first time. The first three were awarded to Petrofac and Schlumberger last year. Another 22 fields were subsequently made available by the government for private oil production contracts. Historically, major international oil companies have been prevented from operating in Mexico because of the country’s constitutional ban on oil and gas concessions and its ban on contracts by which private companies could profit from proprietary technical expertise.
Pemex is currently working on 20 exploration projects and 18 production projects, which are forecast to bring a crude output of 3.5 million B/D by 2027, the company said last month.