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Pemex farming out 40 fields to private companies

Mexico City, Mexico — Pemex says they are preparing to farmout clusters of their smaller oil fields to companies in order to gain better oil prices.

Carlos Treviño, CEO of Pemex, explained that the farmouts will be grouped in up to seven clusters, mostly terrestrial. He says Pemex is working with the Treasury to assign a new fiscal framework for these associations.

After the awarding of three farmouts to private companies, Pemex enlisted 40 more grouped into four or seven clusters or blocks of oil fields, mostly land, said Carlos Treviño.

He says they are grouping them into clusters because they are very small fields. “The State gave us 267 assignments, of these, we have configured and grouped 40 which are mostly land productions. They are fields that we are grouping in what we call clusters because they are very small fields. It made a lot of sense to bundle them rather than have someone want just one.”

He revealed that Pemex is already working with the Ministry of Finance to assign a new fiscal framework for these associations.

In the case of Nobilis-Maximino, a farmout to be awarded on the last day of January, he said that there are already nine companies registered to review the data and two of them have shown much interest.

“If we had better oil prices, the appetite would be greater. They are deep-water projects, they are long-term projects, where the price scenario is an important factor,” explained the CEO who took over Pemex position a week ago.

Regarding the new discovery of the Ixachi field, announced as the largest land discovery in 15 years, Treviño said that they still have not made a decision on whether Pemex will exploit it on its own or accompanied by a private company. Although they are likely to go on their own first and then invite partners, he said.

In response to complaints from private companies about the lack of pipelines that transport gasoline, diesel and other fuels through Mexico, Pemex requested the Energy Regulatory Commission (CRE) to organize the construction of new infrastructure in an open-season scheme, where, together with private sectors, they reserve the capacity.