Mexico's Pemex Renews Scientific Accord with ExxonMobil

MEXICO CITY - Mexico's state-owned oil monopoly Petroleos Mexicanos, or Pemex, said Wednesday it signed a noncommercial agreement with Exxon Mobil Corp. to share technical and scientific information of mutual interest.

Pemex said in a press release that the five-year agreement renews the two oil companies' relations in matters of cooperation. "The goal of this agreement is to define our collaboration in the areas of investigation, scientific development, technical and human resources in exploration, drilling, production, transportation and storage of hydrocarbons," the statement said.

Pemex said the accord did not represent any type of service agreement and did not involve compensation.

Pemex is one of the top oil producers in the world, with about 2.55 million barrels of crude oil a day, along with natural gas production, refineries and other operations. Pemex's biggest operations are in the "easy oil" areas of the shallow southern waters of the Gulf of Mexico, where production has been declining for the last eight years.

ExxonMobil is the world's largest publicly traded international oil and gas company, and produces in nonconventional areas like the deep waters of the Gulf of Mexico on the U.S. side. Pemex is just starting exploration in the deep waters of the Mexican side of the Gulf.

Mexico's new president, Enrique Pena Nieto, is negotiating an energy overhaul with legislators to draw more private investment while bolstering the finances of Pemex, which gives nearly all of its profits to the federal government for its budget.

Copyright (c) 2013 Dow Jones & Company, Inc.

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Mexico's Grupo R Orders Additional Jackups from Keppel FELS for $820M

Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured contracts from Mexican drilling company, Grupo R, to build four jackups worth $820 million.

The jackups will be built to Keppel's proprietary KFELS B Class design and are scheduled for delivery progressively from 2Q 2015 to 4Q 2015.

When completed, Keppel FELS will have built ten KFELS B Class jackups for Mexican customers since 2012, including two for PEMEX.

Wong Kok Seng, managing director (Offshore) of Keppel O&M and managing director of Keppel FELS, said, "Mexico is an important market for us and we are glad that Mexican operators have chosen the KFELS B Class as their preferred rig design and Keppel as the preferred shipyard. We look forward to support Grupo R as they expand their fleet of premium jackup rigs for the Mexican market, with safe, on time and on budget deliveries."

Customized to Grupo R's requirements, the rigs will be able to operate in water depths of up to 400 feet and drill to depths of 30,000 feet.

PEMEX, the Mexican national oil company has announced investment plans of $25.3 billion for 2013, of which $20 billion will be targeted at upstream activities. On a visit to Keppel FELS on 30 January 2013, Mr Emilio Lozoya Austin, CEO of PEMEX, said that the company is embarking on its most ambitious drilling program in decades and plans to add between eight and 12 offshore platforms to its fleet.

Ramiro Garza V., CEO of Grupo R said, "PEMEX have indicated their aim to operate the biggest fleet of jackup rigs in the world and Grupo R is well positioned to support them with four premium jackup rigs. We chose the KFELS B Class jackup design for our first shallow water rigs because of their high specifications and their proven success for PEMEX. In choosing Keppel FELS, we are also partnering a shipyard which is able to meet the needs of our customers in terms of cost-effectiveness, time, technology, quality, and safety with environmental considerations. This will further enhance our capabilities as the leader in Mexico's onshore and offshore drilling industry."

Developed by Keppel's technology arm, Offshore Technology Development, the KFELS B Class rigs incorporate Keppel's advanced and fully-automated high capacity rack and pinion jacking system, and Self-Positioning Fixation System. It provides maximum uptime with reduced emissions and discharges. For its environmental-friendly features, the KFELS B Class design was bestowed the prestigious Engineering Achievement Award from the Institution of Engineers Singapore in 2009.

The above contracts are not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
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Goimar: Mexico's Leading Rig Operator

Rigzone conducted an exclusive Q&A with Yann Kirsch, business development and planning director of Goimar, a Mexican service provider for the oil and gas (O&G) industry. Kirsch discusses Goimar's next step in the Mexican energy industry and how their main goal and priority is to assist Petroleos Mexicanos (Pemex) as Mexico's level of crude-oil production decreases

Rigzone: With PEMEX working and exploring deeper depths and requiring specialized skills, what is Goimar doing to fill this need?

Kirsch: Pemex hydrocarbon production has decreased in the last 10 years at an annual average rate of 11 percent. Most hydrocarbon potential in Mexico is in deep water, however shallow water has been, is, and will continue to be the target for its productiveness and economic viability.

Work-over and drilling rigs are facing more challenging tasks in shallow waters, demanding more capabilities to target more complex and deeper jobs. Goimar has been a part of several well-established and reputable companies to address these demanding capabilities by investing in jackup acquisitions with 30,000 feet drilling capacity and 3,000 hp platform (modular) rigs.

In 2010, we hired and partnered with a Houston-based company, Zentech Inc, to design and engineer a 3,000 hp self-erecting modular rig, which will allow Pemex to drill up to 35,000 feet and reduce costs considerably by eliminating the necessity of using a crane barge to install them on the jackets.

Rigzone: You mentioned that Goimar is investing a significant amount of money to research and development (R&D) in order to prepare the fields and companies for the deepwater challenge. Can you please explain? And how have recent international events impacted this objective?

Kirsch: Goimar has not only invested money in R&D to develop the GX-10 design (3,000 hp self-erecting modular rig), but has also had several contributions awarded by Mexico's entity in charge of the promotion of scientific and technological activities. The CONACYT (Consejo Nacional de Ciencia y Tecnología / the National Council of Science and Technology) for this design and other development that is currently underway will contribute to the worldwide O&G industry.

Rigzone: What challenges has Goimar experienced when the company shifted its focus to rig owner and manager? What has been the upside?

Kirsch: Goimar transitioned from an operator/manager to rig owner/operator/manager. With our operational experiences and knowledge of Pemex and the O&G industry, we have been able to offer a good return of investment to our investors and shareholders, along with a business experience that minimizes risk and opens new opportunities.

Rigzone: With the North American shale boom occurring and the demand for imports at a 20-year low, how will this affect Mexico, Pemex and Goimar?

Kirsch: This has opened a new range of business opportunities and has awakened interest in many international companies interested in this area. Pemex plans to drill more than 150 wells in the next four years, with a potential investment of around $3 billion.

However, Pemex gas production is not a priority as oil, therefore Pemex will concentrate most of its assets and investments in the oil drilling division - where Goimar's growth has been created.

Rigzone: You mentioned fundamental changes are taking place in the Mexican oil and gas industry that directly affect Pemex's overall growth vision, can you please explain this?

Kirsch: A new presidency has begun, and with it, will come great fundamental changes for the energy sector that will positively affect the current status quo of the Mexican O&G industry.

There is an imminent necessity to boost production, and the only solution to this is hiring more rigs and work as efficiently as possible. This will result directly in an economic and social growth for the country. Pemex has been changing positively in its openness to international players and markets, by creating International Open Tenders, bringing new technology and international know-how. Safety regulations and standards have always been implemented in the industry, and today more than ever, safety procedures and certifications are priority for Pemex.

Rigzone: With PEMEX expanding its shallow water fleet, what opportunities will this provide for Goimar? Pemex is building two jackups at Keppel FELS, will there be an opportunity for Goimar to manage these Pemex-owned units?

Kirsch: Goimar will continue to be one of the leading Mexican rig operator and service providers for Pemex by continuing to acquire jackups. Pemex's interest to build two Keppel FELS units is a positive sign for the Mexican O&G industry, and it will mark an example for international shipyards and increase interest in the Mexican market. This experience will start a new O&M era for Pemex personnel. Pemex will be responsible for operating and maintaining the units.

Rigzone: What are Goimar's near-term goals? Are there more rig acquisitions on the horizon? Does Goimar plan to acquire any deepwater units?

Kirsch: Our main goal is to satisfy our main customer: PEMEX. There will be more rig acquisitions in the short term, and also new builds (jackups and platform rigs). Goimar will not enter the deepwater market, yet.

Rigzone: Do you think Pemex plans to use direct negotiation methods or an open-tender system that was in place before? Can you explain how the current system works and in your opinion, which is more sufficient?

Kirsch: There are two types of methods: open-tender and direct assignation. Both have their pros and cons. It really depends on the current market, timing restraints, players participating, assets availability, rates, and other variables that dictate how Pemex proceeds.

The advantages of a direct assignation (direct negotiation) is that timing is shortened and there are no competitors involved. With an open-tender process, the battle for price and the longer timing on the process is very common.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Goimar: Mexico's Leading Rig Operator

Rigzone conducted an exclusive Q&A with Yann Kirsch, business development and planning director of Goimar, a Mexican service provider for the oil and gas (O&G) industry. Kirsch discusses Goimar's next step in the Mexican energy industry and how their main goal and priority is to assist Petroleos Mexicanos (Pemex) as Mexico's level of crude-oil production decreases

Rigzone: With PEMEX working and exploring deeper depths and requiring specialized skills, what is Goimar doing to fill this need?

Kirsch: Pemex hydrocarbon production has decreased in the last 10 years at an annual average rate of 11 percent. Most hydrocarbon potential in Mexico is in deep water, however shallow water has been, is, and will continue to be the target for its productiveness and economic viability.

Work-over and drilling rigs are facing more challenging tasks in shallow waters, demanding more capabilities to target more complex and deeper jobs. Goimar has been a part of several well-established and reputable companies to address these demanding capabilities by investing in jackup acquisitions with 30,000 feet drilling capacity and 3,000 hp platform (modular) rigs.

In 2010, we hired and partnered with a Houston-based company, Zentech Inc, to design and engineer a 3,000 hp self-erecting modular rig, which will allow Pemex to drill up to 35,000 feet and reduce costs considerably by eliminating the necessity of using a crane barge to install them on the jackets.

Rigzone: You mentioned that Goimar is investing a significant amount of money to research and development (R&D) in order to prepare the fields and companies for the deepwater challenge. Can you please explain? And how have recent international events impacted this objective?

Kirsch: Goimar has not only invested money in R&D to develop the GX-10 design (3,000 hp self-erecting modular rig), but has also had several contributions awarded by Mexico's entity in charge of the promotion of scientific and technological activities. The CONACYT (Consejo Nacional de Ciencia y Tecnología / the National Council of Science and Technology) for this design and other development that is currently underway will contribute to the worldwide O&G industry.

Rigzone: What challenges has Goimar experienced when the company shifted its focus to rig owner and manager? What has been the upside?

Kirsch: Goimar transitioned from an operator/manager to rig owner/operator/manager. With our operational experiences and knowledge of Pemex and the O&G industry, we have been able to offer a good return of investment to our investors and shareholders, along with a business experience that minimizes risk and opens new opportunities.

Rigzone: With the North American shale boom occurring and the demand for imports at a 20-year low, how will this affect Mexico, Pemex and Goimar?

Kirsch: This has opened a new range of business opportunities and has awakened interest in many international companies interested in this area. Pemex plans to drill more than 150 wells in the next four years, with a potential investment of around $3 billion.

However, Pemex gas production is not a priority as oil, therefore Pemex will concentrate most of its assets and investments in the oil drilling division - where Goimar's growth has been created.

Rigzone: You mentioned fundamental changes are taking place in the Mexican oil and gas industry that directly affect Pemex's overall growth vision, can you please explain this?

Kirsch: A new presidency has begun, and with it, will come great fundamental changes for the energy sector that will positively affect the current status quo of the Mexican O&G industry.

There is an imminent necessity to boost production, and the only solution to this is hiring more rigs and work as efficiently as possible. This will result directly in an economic and social growth for the country. Pemex has been changing positively in its openness to international players and markets, by creating International Open Tenders, bringing new technology and international know-how. Safety regulations and standards have always been implemented in the industry, and today more than ever, safety procedures and certifications are priority for Pemex.

Rigzone: With PEMEX expanding its shallow water fleet, what opportunities will this provide for Goimar? Pemex is building two jackups at Keppel FELS, will there be an opportunity for Goimar to manage these Pemex-owned units?

Kirsch: Goimar will continue to be one of the leading Mexican rig operator and service providers for Pemex by continuing to acquire jackups. Pemex's interest to build two Keppel FELS units is a positive sign for the Mexican O&G industry, and it will mark an example for international shipyards and increase interest in the Mexican market. This experience will start a new O&M era for Pemex personnel. Pemex will be responsible for operating and maintaining the units.

Rigzone: What are Goimar's near-term goals? Are there more rig acquisitions on the horizon? Does Goimar plan to acquire any deepwater units?

Kirsch: Our main goal is to satisfy our main customer: PEMEX. There will be more rig acquisitions in the short term, and also new builds (jackups and platform rigs). Goimar will not enter the deepwater market, yet.

Rigzone: Do you think Pemex plans to use direct negotiation methods or an open-tender system that was in place before? Can you explain how the current system works and in your opinion, which is more sufficient?

Kirsch: There are two types of methods: open-tender and direct assignation. Both have their pros and cons. It really depends on the current market, timing restraints, players participating, assets availability, rates, and other variables that dictate how Pemex proceeds.

The advantages of a direct assignation (direct negotiation) is that timing is shortened and there are no competitors involved. With an open-tender process, the battle for price and the longer timing on the process is very common.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Mexico's Ruling Party Expected to Favor Private Investment in Pemex

MEXICO CITY - In what would be a historic step, Mexico's ruling party is expected to modify its political statutes Sunday to allow private investment in state oil monopoly Petroleos Mexicanos and the possibility of the party supporting value-added tax on currently exempt food and medicines.

The proposed changes by the Institutional Revolutionary Party, or PRI, if approved, would give President Enrique Pena Nieto additional maneuvering room as he prepares to submit significant tax and energy overhauls to Congress later this year.

The changes would be a bold move for the PRI, which was formed in the wake of the 1910 Mexican Revolution and became a world pioneer when it expropriated the oil industry in 1938 under former President Lazaro Cardenas.

A PRI member who has access to a draft agreement said the PRI is preparing to support changes in its political platform to recognize a need for "mechanisms to favor a greater involvement of the private sector in the generation of energy," while expressly keeping hydrocarbon resources in state hands. The party member spoke on condition of anonymity.

The proposal amends an article approved in 2008 in which the PRI said the state should maintain the "property, management, control and fruits" of the oil industry under Pemex.

The PRI would reiterate its defense of constitutional articles that establish a national oil industry, the party member said.

A reform to increase private involvement in the oil sector is one of the key promises of Mr. Pena Nieto to unleash economic growth. Government officials estimate an energy reform could add two percentage points to annual economic growth, but critics see it as a transfer of oil income to foreign firms.

Modifications to the PRI's platform are expected to be voted on Sunday during a national party congress in Mexico City where more than 4,000 delegates from all over the country will gather. Mr. Pena Nieto has been invited to the event.

In addition to easing its position on Pemex, the party that ruled Mexico from 1929 to 2000 before spending 12 years in opposition is also expected to erase from its platform the prohibition on supporting value-added tax taxes on food and medicines, an old battle flag of a party that still considers itself center-left.

The expected change is intended to give more margin to Mr. Pena Nieto's government on a tax reform expected to be presented from July, in parallel with the energy reform.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here