One of the main policies of the administration of President Andrés Manuel López Obrador (AMLO) has been the rescue of the energy sector by strengthening the State’s productive enterprises. Below, you will find the relevant data comprised in the Government Report 2018-2019:
- 210.7 billion pesos (USD$10.498 billion) of the Expenditure Budget were allocated for investing in Exploration and Production of oil and gas, and 25 billion pesos (USD$1.246 billion) as an equity contribution for Petróleos Mexicanos (Pemex).
- Pemex’s production of crude oil and natural gas increased 2.7% and 4.6% respectively, during the period of January to June 2019.
- Pemex Exploration and Production has allocated 48 billion pesos during 2019 for the exploitation of 20 fields: 16 in shallow waters, and 4 onshore. The latter represents a 38% increase of investment for hydrocarbons exploration and production.
- Pemex reduced management time for the development of oil fields from 2.5 to 0.6 years.
- As for drilling services, AMLO’s government has adopted a policy of hiring private companies in order to reduce the execution time of the works. In a first stage, 70% of the wells to be drilled will be assigned, and the remaining 30% will be assigned in a second stage to those companies with better results during the first stage.
By Gerardo Tallavas, Senior Consultant at Muvoil Consulting
Muvoil Consulting is a group of specialists in the O&G sector: legal, fiscal, social and environmental. Our multidisciplinary approach allows us to design strategic solutions that can unravel the most complex regulatory and transactional challenge that a petroleum project can face. Do not hesitate to contact us for further details.