• 1 hour Maduro Names Chavez’ Cousin As Citgo Boss
  • 8 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 13 hours Keystone Pipeline Restart Still Unknown
  • 17 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 19 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 21 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 22 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 24 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 1 day Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 7 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 7 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 7 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 8 days Africa’s Richest Woman Fired From Sonangol
Keystone XL Is Far From Certain

Keystone XL Is Far From Certain

Today’s vote in favor of…

Norway’s $35B Oil Stock Dump Could Hurt The Industry

Norway’s $35B Oil Stock Dump Could Hurt The Industry

The world’s largest sovereign wealth…

Companies Lining Up to Profit on Mexican Oil

Companies Lining Up to Profit on Mexican Oil

The landmark energy reform passed last year as part of Mexican President Enrique Pena Nieto’s agenda opened up Mexico’s oil sector for the first time in 76 years. The state had held a monopoly over oil exploration and development, but the recent liberalization will allow private companies to begin to invest. Bloomberg News reported on the wave of companies lining up to profit off of the move. They are raising cash as fast as they can in hopes of beating out their competitors. “It seems like an opportune moment,” Fox said at the Bloomberg Economic Summit in Mexico City on March 20. “Many people are already moving based on the real expectations for the secondary laws and what comes next.”

For example, Alfa SAB, one of Mexico’s largest petrochemicals producers, raised $1 billion in bond sales on March 20 with the goal of funding its energy business. A state-owned utility, Comision federal de Electricidad, hopes to reform its business operations in order to sell natural gas, a move that is now viable for the company under the energy form legislation. And former Mexican President Vincente Fox is raising $500 million for a fund to invest in Mexico’s oil sector.

Related Article: Exxon Eyes Production at 10 New Projects

It is not just Mexican firms lining up. International oil companies like ExxonMobil and Chevron Corporation have shown great interest as well. Bank of America has projected that the energy reform could boost foreign direct investment by $20 billion per year. Citigroup estimates that oil production could double to 5 million barrels per day, although it will take years to lift production from new fields. The energy reform has lifted the economic prospects for Mexico, with the long-term growth rate projected to climb by 1%. Moody’s Investors Service also raised Mexico’s credit rating to A3 as a result.

By Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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