Mexico's Petroleos Mexicanos (Pemex) has changed the name of its Multiple Service Contracts (MSC) office to "New E&P Contracts" office to respond to exploration and production challenges and to increase its business opportunities. MSCs, which were enacted by the government three years ago, allow for private investment in state-owned exploration and production (see NGI, Jan. 7, 2002).
The new office, said officials, will have the same responsibilities within Pemex, but the name change "will allow us to adjust our strategies to the international oil and gas industry's dynamic, as well as to develop new contractual mechanisms in order to effectively and efficiently develop our hydrocarbon potential," the company said in a statement.
"We confirm our commitment to the MSCs, which will provide Pemex with a total investment of US$ 5.9 billion, and will boost its natural gas production in the Burgos Basin by around 605 MMcf/d, reducing Mexico 's dependence on costly natural gas imports. The contracts will also attract important technology and expertise for Pemex."
In related news, Pemex overtook ExxonMobil Corp. in the first six months of this year to become the world's number three oil producer, according to the company's latest statistical report. In terms of natural gas production, Pemex is in ninth place worldwide.
Russia's Gazprom was the leader in natural gas production worldwide.
Through July, Pemex produced on average 3.32 million bbl/d of crude, which edged out ExxonMobil, Venezuela's PDVSA and Royal Dutch/Shell. Pemex only trails number one Saudi Aramco and Iran's NIOC, which was number two worldwide. Saudi Arabia, with production of more than 9 million bbl/d of crude, is the top producing country, followed by Russia, the United States, Iran, China and Mexico, based on annual figures.
Pemex, which posted revenues of US$70 billion in 2004, generates close to one-third of the government's revenues. It currently pays 61% of its gross revenue to the federal government in taxes and royalties. However, Mexico's executive branch is working out a proposal to modify tax changes to allow Pemex to invest more in exploration and production.
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