NATIONAL HYDROCARBONS PLAN
On December 16, 2018, Mexican President, Andrés Manuel López Obrador announced a new National Hydrocarbons Plan which aims to increase the oil extraction to 2.4 million barrels of crude oil per day in 2024.
Among the announcements made by the Mexican President related to this plan are: (i) invest in exploration blocks located in Tabasco, Veracruz and Campeche without public debt; (ii) re-locate the general offices of the State-Owned Productive Company, PEMEX, in Ciudad del Carmen, Campeche; (iii) issue a new business plan for PEMEX aimed to increase the oil production. This plan additionally will increase the hydrocarbons reservoirs and accelerate the development of the blocks already discovered; (iv) fight against corruption inside PEMEX; (v) rehabilitation of the six existing refineries; (vi) construction of an additional refinery in Dos Bocas, Tabasco.
PEMEX director, Romero Oropeza stated that the plan intends to develop 117 wells though new types of agreements to be granted to private companies. Activities would be focused in 20 fields that already have reserves 2P and that may produce oil in the short term.
The referred plan additionally foresees to drill more wells in 12 fields located in shallow waters and 8 more in onshore blocks. Agreements for these works are expected to begin in January 2018. The first package of these agreements will be aimed for services related to these wells, among them: (a) to build the required marine infrastructure; and (b) to drill additional wells.
Under the above-referred scheme PEMEX would be in charge of supervising the services, as well as of the engineering.
The plan announced by López Obrador to be implemented in part by PEMEX with the support of the Federal Government aim to strengthen such company by increasing its role in all activities related to the oil industry, including increasing oil production and its refining.
The lawyers of the energy, mining and infrastructure area of our firm are available for any questions or comments on the above.
SINCERELY,
Juan Carlos Serra
serra@basham.com.mx
Jorge Eduardo Escobedo Montaño
Jorge Cobos Franco
Jorge Campuzano
Mexico City, December 17th, 2018
