Country intelligence report: Mexico

Mexico is undergoing a major change within its petroleum industry after a ban on foreign oil companies working in the country was lifted when new legislation entered into force in 2014. The country is going though some turmoil as it adjusts to the new laws, allowing foreign companies to explore for and produce oil. In addition, state-owned PEMEX is being transformed into a private company; a major shock, as it has always been an integral part of the Mexican government.

By Oil & Gas Engineering February 27, 2015

Basic Facts:

Capital: Mexico City (Ciudad de Mexico)

Population: 120,286,655 (CIA World Factbook)

Quick Figures: All figures provided by the U.S. Energy Information Administration

– In 2013, crude oil accounted for 2.5 million barrels of oil per day (bopd), or 87% of total output. The remainder consisted of condensates, natural gas liquids, and refinery processing.

-Mexico’s total oil production had been declining substantially, 22% from its height in 2004 to 2009.

-Crude oil production in 2013 was at its lowest since 1995 and continues to decline thus far in 2014.

-Mexico is the third largest producer in the Americas.

-Production should increase after being dominated for 76 years by national oil company PEMEX. After President Enrique Pena Nieto signed the bill into law, private oil companies will now be allowed to operate in Mexico since 1938 when all foreign oil companies were forced out of the country.

Hydrocarbons: All figures provided by the BP Statistical Review: 

Oil reserves at end of 2013: 11.1 billion barrels of oil

Oil production in 2013: 2.8 million bopd

Natural gas reserves at end of 2013 : 0.3 tcm

Natural gas production in 2013: 56.6 bcm

Major Companies Working in the Country:

  • PEMEX
  • Groupo Bal’s Petrobal
  • Chevron (entering in 2016)
  • Exxon (entering in 2016)
  • BP
  • Ecopetrol
  • Shell Mexico
  • Technip
  • Welltec
  • Weatherford
  • BG Group Mexico Exploration
  • Seadrill
  • Weltec
  • Wood Group Mustang
  • Groupo R
  • Groupo Goimar
  • Groupo Altavista
  • Groupo Diavaz
  • North Point Systems de Mexico

Major Projects:

– Mexico has placed 14 shallow-water oil drilling sites in the Bay of Campeche up for lease, but bidding for the block has been delayed due to the slump in oil prices. Expect this to begin when oil climbs higher in the coming year.

– In general, much of the oil and gas infrastructure must be updated to handle the future demand. Much of the infrastructure is inadequate due to reinvestment of oil revenue. Between 2013 and 2018, the government will invest some $315 billion into infrastructure projects.

– Offshore drilling projects: super-major Shell is looking at potential deep water tie-ups with Mexican national oil company PEMEX in the Trion and Exploratus fields located within the Perdido Fold Belt, This lies within close proximity to the U.S.-Mexican border. 

Edited by Oil & Gas Engineering. See more country intelligence reports below.

Original content can be found at Oil and Gas Engineering.