• 23 hours This Will Be the Answer From China On U.S. Tariffs
  • 13 hours Bad News For The Climate: Coal Burning, And Carbon Emissions, Are On The Rise Again
  • 54 mins China's Yaun/Gold backed Futures contracts
  • 1 day France Terrorist Attack?! At Least One Dead In French Supermarket Hostage-Taking
  • 1 day Twitcoin....
  • 2 days Snowden Reveals Bitcoin Transactions Being Tracked by NSA
  • 21 hours U.S. Charges, Sanctions Iranians For Global Cyber Attacks on behalf of Tehran. What about sanctions on Russia?
  • 12 hours Canada Bent On Ruining Its Oil Industry
  • 3 days Elon Musk’s $2.6 Billion Tesla Challenge
  • 21 hours The Facebook/Cambridge Analytica Scandal
  • 22 hours Surprise! Aramco Scraps International Listing Plans
  • 13 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 2 days Getting out of oil .. now
  • 2 days EU Proposes Online Turnover Tax For Big Tech Firms
  • 23 hours HAPPY RIG COUNT DAY!!
  • 2 days U.S. Judge To Question Big Oil On Climate Change
The Battle For China’s Growing Gas Demand

The Battle For China’s Growing Gas Demand

Russia’s natural gas giant Gazprom…

Mexico Cancels Deepwater JV Tender Due To Lack Of Interest

offshore rig

Mexico’s oil regulator canceled on Thursday an auction slated for January 31 for a joint venture with state oil company Pemex in a deepwater area containing super light crude oil, because no company had expressed interest in the tender.

The auction—this time a farm-out auction—is the second oil auction to fall flat of expectations this week, after yesterday, US officials announced disappointing results from its lease sale in Arctic Alaska.

Mexico’s National Hydrocarbons Commission, CNH, was seeking a company that would be willing to join Pemex in tapping super light crude in the Maximino-Nobilis area in the Gulf of Mexico near the border with the U.S.

The fields, discovered by Pemex in 2013 and 2016, are estimated to hold more than 500 million barrels of crude oil equivalent (bpce) in its total 3P reserves, according to the state oil firm. The field in the area of Perdido is estimated to have prospective resources greater than 700 million bpce, mainly of light crude oil, Pemex says.

These kinds of joint ventures with the state oil firm Pemex, known as farm-outs, are part of the Mexican government’s efforts to attract foreign investors to its oil and gas sector after ending decades of Pemex monopoly in 2014.

The Mexican regulator had previously expected first commercial oil at Nobilis-Maximino by 2024, and peak production of 174,000 barrels of oil equivalent (boe) and 265 million cubic feet of natural gas per day coming on stream in 2026.

Related: Oil Investors Are Growing Impatient

Before the regulator’s decision to cancel the auction due to lack of interest, a Pemex official said in November that the state firm’s stake in the possible joint venture would be cut to 40 percent from 49 percent. Still, there were no takers.

Earlier this year, the head of the oil regulator, Juan Carlos Zepeda, said that the cost of the Nobilis-Maximino project would be around US$10.7 billion. The production costs were estimated at US$27 per barrel.

Considering the fact that the oil regulator has now cancelled the farm-out tender, it looks like neither Big Oil nor independents are interested in this particular deepwater field offshore Mexico.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • George Shawnessey on December 09 2017 said:
    When investors realize that we can't burn all the known fossil fuel reserves without driving the earth's climate permanently out of control, the value of oil company stocks will follow the trajectory of Peabody Coal. Oil and gas investors are going to lose their assets.
    Click the figure to see how the world's temperature has increased each month since 1850

Leave a comment

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