Petroleos

In an effort to boost oil and gas production, the chief of Mexico’s state-owned Petroleos Mexicanos (Pemex) announced that the company will drill its first Gulf of Mexico deepwater well this year in collaboration with an international petroleum consortium. Although no project partners were revealed, Pemex’s Raul Munoz Leos said drilling would be completed with state-of-the-art technology.

Despite a strong boost from increased sales, Petroleos Mexicanos’ (Pemex) net loss for full year 2003 grew by 37% over 2002’s loss. Attributing the fall-off to increased tax and royalty payments made to the federal government, Mexico’s state oil and gas monopoly posted a 2003 loss of $3.7 billion. Income before taxes and duties increased 29% to $30.3 billion. Taxes and duties for the year came in at $34 billion, an increase of 30% from 2002.

Tidelands Oil & Gas Corp. has entered into an agreement with Petroleos Mexicanos y Sus Organismos Subsidiarios (Pemex), Mexico’s state-owned petroleum company, to design, build and operate an underground natural gas storage facility and related surface equipment for Pemex near Reynosa, Tamaulipas, Mexico.

Tidelands Oil & Gas Corp. said Monday that it has entered into an agreement with Petroleos Mexicanos y Sus Organismos Subsidiarios (Pemex), Mexico’s state-owned petroleum company, to design, build and operate an underground natural gas storage facility and related surface equipment for Pemex near Reynosa, Tamaulipas, Mexico.

After failing to attract any bids on two Burgos Basin blocks, Petroleos Mexicanos (Pemex) said two international groups are competing to develop non-associated natural gas reserves in the Fronterizo, one of the basin’s smaller blocks.

After failing to attract any bids on two Burgos Basin blocks, Petroleos Mexicanos (Pemex) said two international groups are competing to develop non-associated natural gas reserves in the Fronterizo, one of the basin’s smaller blocks.

Petroleos Mexicanos (Pemex), Mexico’s state-owned oil and gas company, received no bids by the deadline Wednesday for its Ricos natural gas block, located in the Burgos Basin. It was the second week in a row that Pemex failed to attract even one bidder to produce non-associated gas in the northeast Mexico basin.

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.

Petroleos Mexicanos (Pemex) expects more competition when it tenders the bids for Cuervito, another natural gas field in the prolific Burgos Basin. The winner of the Cuervito multiple service contract (MSC) is expected to be announced within two weeks.