Oil and Gas
In 2011, British company Petrofac won two of the first
three contracts offered by PEMEX to the private
sector for performance improvement of the Magallanes and
Santuario mature onshore fields located in the state of
Petrofac will invest £303 million for a 90 per cent
interest return, it will also receive a reimbursement of 75
per cent of its development costs and extra bonuses for
The UK Trade & Investment team at the British Embassy
in Mexico has given Petrofac support and advice
throughout the project bidding process. UKTI has provided
valuable information on decision makers in the market, as
well as advice on local business etiquette and local
Mexico is the world's seventh largest oil
producing country with an approximate
production of 2.75 million barrels per
day and the world's fifteenth largest oil
proven reserves. The country's shale
gas potential resources are considered
to be among the highest in the world
and their development will need the
technology and expertise of world
class energy companies.
In 2011, Mexico was the seventh largest oil producer in the
world and currently ranks among the top 20 in terms
of gas production. Petróleos Mexicanos (PEMEX), the State
National Oil Company is one of the largest oil companies
in the world and the sole producer of crude oil, natural
gas and refined products in Mexico, being the most important
source of government income.
PEMEX requires resources of around US$20 billion per year
in capital expenditure in order to maintain production in
declining fields, develop a more efficient exploitation of
proven reserves, a move towards deep-water reserves and
to increase security and minimise environmental impact.
PEMEX has oil reserves of 45 billion barrels and proven
reserves equivalent to 9.2 years of production (13.8
billion barrels) Deep water accounts for more than half
of PEMEX's prospective hydrocarbons reserves.
In October 2008, an energy reform was passed by the Mexican
Government which means that PEMEX has been granted
greater autonomy for decision making. This alleviates some of
the previous restrictions and therefore makes the state
company more open to do business with foreign companies.
While the great majority of the oil and gas industry is in
the hands of PEMEX, there are opportunities for UK
companies, particularly with the new contract schemes and also
for equipment and service suppliers in specific projects.
British firms already participate in Mexico's oil and
gas industry, both in the new contracts schemes and as
There is more potential to participate in making Mexico's
future deepwater production a safe, clean and
efficient one. The UK can share its expertise
and experience from the North Sea in areas, such as:
project management, major contracting, design and
manufacturing of advanced equipment.
In 2010, PEMEX announced and tendered its first incentive
based contract model for exploration and production. In
2011, PEMEX tendered the first three
incentive exploration and production contracts, won by
Petrofac. The first licensing round included the mature
onshore fields of Carrizo, Magallanes and Santuario;
the second round of mature field contracts is expected to
be announced in 2012 and will include 6 blocks (4 onshore and
2 in shallow waters). The contract model for the second
round of tenders is expected to be very similar to the one
designed for the first round.
Major UK companies can bid for PEMEX contracts or might
explore the possibility of establishing partnerships with
current PEMEX contractors where efficient and affordable
technology will be the key.
Most opportunities will appeal to innovative and
experienced companies in areas such as: productivity,
redesign and maintenance of wells, seismic surveys,
environmental restoration studies and infrastructure works.
UK companies can sell services to the winning contractors
or negotiate a consortium.
Onshore and offshore.
Platform design and construction.
Decommissioning of production facilities.
Design, construction, installation and commissioning of
Receiving terminals and production facilities.
Exploration and appraisal drilling.
Regional geological studies (including 3D and 2D
Reservoir appraisal and exploration techniques.
Training and education.
Deep water technologies.
Develop heavy and extra heavy oil recovery technology.
Contact and Further Information
A report on the Mexican oil and gas sector as well as more
information about the specific business opportunities
can be obtained by contacting the UKTI team in Mexico
British Embassy Mexico City Tel: + 52 55 1670
3234 Email: email@example.com
Source - UKTI