Renaissance Oil, which feels proud to be the first private company to extract oil in Mexico after 70 years, considers that the royalty fee structure that it will pay to the state for oil production in the three blocks acquired in the Round One, generates too much pressure on the investments required to extract oil at great depths.
Pemex under José Antonio González Anaya seeks to continue opening to the world and, for the first time in the state-oil company’s history, is looking to join forces with foreign partners to explore oil both deep water fields and onshore.
Being one of the five persons who advise Petróleos Mexicanos (Pemex) is a great benefit for their pockets. According to El Universal, during the past fifteen months, Pemex’s disbursed around MXN$ 14.4 million (Approx. US$ 791.1 thousand) to the Independent Directors for their services.
Renaissance Oil Corp. is the first company after 78 years to compete with state -owned Pemex in hydrocarbons production and commercialization in Mexico.
The “3 de 3” law, recently approved in Mexico, has already generated some concerns, especially to Pemex. The State-Company is currently seeking partnerships with private companies abroad.
When the price of WTI (West Texas Intermediate) surpassed the US$100 per barrel in 2014, it was all happiness in the sector with large projections and expectations; just two years later with the barrel closer to US$50, things have changed substantially.
Ecopetrol (NYSE:EC) and Pacific Rubiales (TSX:PRE) are both looking north and making the upcoming concession round in Mexico one of their main targets looking forward. Both are included in the list of 39 firms pre-qualified for Round One.