• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 2 hours Sources confirm Trump to sign two new Executive orders.
  • 10 hours CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 4 hours In a Nutshell...
  • 1 hour No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 23 hours Why Wind is pitiful for most regions on earth
  • 10 hours A Real Reality Check on "Green Hydrogen"
  • 1 day Why Oil could hit $100
  • 10 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 1 day During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 10 hours Putin Paid Militants to Kill US Troops
  • 56 mins Where is Alberta, Canada headed?
  • 3 days Coronavirus hype biggest political hoax in history

Sweetening the Deal for Foreign Investors in Mexico

Bottom Line: As Mexico proceeds towards oil and gas liberalization and the modernization of state-run Pemex, it’s taking steps to lure in private companies by lifting restrictions on registering the value of contracts with the US Securities and Exchange Commission—the attractive notion of booking reserves.  

Analysis: Mexican President Enrique Pena Nieto’s plan is to get rid of these restrictions and replace contract values reported to the US SEC with values that would be converted into volume and acknowledged on balance sheets. What this means, essentially, is that US companies (think ExxonMobil) would be able to book reserves, which would make it easier to raise financing. It gives potential investors a better idea of where money is being spent and what production will look like further down the road. This means that risk-sharing is registered with the SEC as an economic interest. It’s great for the balance sheet.

Recommendation: Mexico’s goal here is to make the president’s proposed profit-sharing deal attractive enough to ensure foreign interest in the project. The effect will have to be immediate because a lot is at stake here. We’re talking about ending a 75-year state monopoly on oil and gas exploration and production in Mexico. It won’t work unless there are enough incentives or foreign investors. The Mexican president is looking to have this approved by the end of the year. Who’s interested already?…




Oilprice - The No. 1 Source for Oil & Energy News