The natural gas-heavy Burgos Basin in northern Mexico accounted for 15% of the country’s total gas production in 2016, and foreign investment in the play could put it on par with the Eagle Ford Shale in South Texas, according to the U.S. Energy Information Administration (EIA).
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Mexico’s Burgos Basin Has Eagle Ford-Like Potential, Says EIA
The natural gas-heavy Burgos Basin in northern Mexico accounted for 15% of the country’s total gas production in 2016, and foreign investment in the play could put it on par with the Eagle Ford Shale in South Texas, according to the U.S. Energy Information Administration (EIA).
Mexico Non-Associated NatGas Production Hits 15-Year Low
Production from Mexico’s leading principal natural gas basins — Burgos, Sabinas, Burro-Picachos and Veracruz — is at a 15-year low, the National Hydrocarbons Commission (CNH) reported this week.
Mexico’s Non-Associated Natural Gas Production Declines, Driving Overall Output Lower
Total natural gas production in Mexico fell at a trendline rate of 3.7% a year between 2012 and the first half of 2017, according to NGI calculations, but that figure obscures the actual driving force behind the overall decline.
Industry Briefs
No bids were offered by any producers to explore Mexico’s Corindon-Pandura natural gas block in the Burgos Basin, and a spokesman for Petroleos Mexicanos (Pemex) said Wednesday that it now may consider whether to open a new bid process or assign the block to a specific company. Under its new Multiple Service Contract (MSC) plan, Mexico’s state oil monopoly opened up bidding on seven blocks of the gas-rich basin that borders Texas’ border to offer private companies the opportunity to explore for non-associated gas. Three blocks already have been tendered, but Pemex only received one bid for each of them. Pemex had planned to tender all of the bids by Nov. 19. Sergio Guaso, who is in charge of Pemex’s MSCs, told Reuters, “this is not good news, but it is not the end of the project.” He said Pemex may re-bid the block, resize it and reevaluate the scope of the contract or assign it directly to a specific company. Pemex will review why the block did not receive bids and then meet with potential bidders to decide how to proceed. The three remaining blocks will be auctioned on schedule, he added.