Andres Manuel Lopez Obrador (AMLO) wants to build a new refinery to increase the refining capacity and production in Mexico. However, this project is starting to have problems.
Lopez Obrador took office as Mexico’s president and investors are waiting for his next move. What can they expect during 2019?
The oil rounds were positioning themselves as one of the main alternatives to recover the production and reserve metrics in Mexico. However, the National Hydrocarbons Commission (CNH) made an unfavorable decision for the country on this issue. In addition, the entity ruled on the Pemex farm-outs tenders.
The Secretary of Finance (SHCP), Carlos Urzúa, and Pemex’s CEO, Octavio Romero, will have to negotiate how much money will be given to the NOC for the assets that it should have developed in Round 1.
Andrés Manuel López Obrador (AMLO) is determined to recover Pemex production as soon as possible. He announced a new drilling program to increase this metric and expectations are high.
Mexico’s production does not seem to improve; the new government will have to decide whether Pemex should reactivate currently closed wells, of if two consortiums should help it develop the project.
Andres Manuel Lopez Obrador (AMLO) wants to reactivate the metrics of the refining sector quickly, awakening the interest of several investors and companies. Oscar Scolari Romero, CEO of Rengen, spoke about the firm’s plans in this sector.
A group of workers from the Mexican Republic Oil Workers Union (STPRM) created a new union, protesting against the re-election of Carlos Romero Deschamps as the STPRM’s president. These and other stories in our periodic summary of labor-related issues.
Mexico opened the doors of its energy sector recently thanks to Energy Reform and one of the main goals was to increase its competitiveness. The Fraser Institute of Canada made an energy ranking worldwide, where Mexico improved positions.
AMLO is convinced that his refinery plan will be Mexico’s salvation. Experts think otherwise.
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