AMLO sounds death knell for oil reforms with Pemex farm-out halt

Category : News

By Amy Stillman on 2/21/2019


Photo: Mexico President Andres Manuel Lopez Obrador.

MEXICO CITY (Bloomberg) — Mexico President Andres Manuel Lopez Obrador has suspended future Petroleos Mexicanos farm-out bids, putting one of the final nails in the coffin for the 2014 energy reforms that promised to reverse years of oil-production declines with private companies’ involvement.

“What is already agreed will continue on course,” said Pemex chief executive Octavio Romero during the president’s morning conference. He also said Pemex’s focus currently is to develop service contracts rather than farm-out deals.

Pemex’s existing farm-outs will continue, but new tenders will not occur until those already awarded show results, Lopez Obrador said during his daily morning press conference. His comments echo a December decision to halt competitive oil rounds for at least three years until the companies involved showed results.

The decision could have repercussions for Pemex, whose annual oil output has fallen to the lowest level since at least 1990, resulting in the decline of Mexican light crude grades such as Olmeca and Isthmus.

The farm-outs would allow Pemex to acquire know-how and technology, and share the financial burden of field development by partnering with top tier international companies, said Pablo Medina, vice president of Welligence Energy Analytics in Houston. “Pemex alone can’t deliver all of Mexico’s production needs from a financial or operational standpoint. Given its stretched finances, it would be wise to leverage its limited capital through partnerships,” he said. Canceling Pemex’s farm-outs, “would be returning to old ways that have been proven completely ineffective,” said Medina.

In December, Mexico’s oil regulator, CNH, postponed Pemex farm-out tenders for seven onshore areas previously planned Feb. 14 until Oct. 9 and canceled two competitive auctions that were also planned for this month.

Oceaneering awarded integrity management program for Total’s Tyra Redevelopment Project

Category : News



Photo: Total Tyra offshore platform.

ABERDEEN — Oceaneering International, Inc. has been awarded a two-year integrity management contract with Total E&P Danmark to support its significant Tyra Redevelopment project in the Danish North Sea.

The company’s scope includes the full development of Tyra’s integrity management program, developing risk-based assessments that will enable effective and optimized inspection and monitoring for all pressure systems and piping, topsides and jacket structures as well as pipelines.

Managed from our Aberdeen office, Oceaneering will use a multi-disciplined team of corrosion, inspection, structural and pipeline engineers, with specialist experience in delivering large-scale integrity scopes.

Bill Boyle, senior V.P. for Oceaneering’s Asset Integrity business said:

“We are working collaboratively with Total to ensure that the Tyra Redevelopment becomes a world-class operating facility. This project is defining the way in which integrity management is delivered, and our full suite of services will help to accomplish Total’s goal of enabling remote operations of the future platform.”

In addition to the Tyra Redevelopment, Oceaneering provides a range of other services to Total, from topsides inspection management services in the UK North Sea to ROV, tooling and survey support globally.

Tyra, in production for over three decades, is a unique field. It processes 90% of the Denmark’s gas production. Redevelopment not only secures production at the field for the next 25 years, but the infrastructure will enable operators to pursue new gas projects in the northern part of the Danish North Sea.

At peak production it is expected to produce the equivalent of supplying 1.5 million Danish homes with gas. The investment in this project is the largest of its kind within the Danish North Sea.

Fluor awarded Halliburton chemicals project in Saudi Arabia

Category : News


Photo: Halliburton and Fluor executives at groundbreaking ceremony for the Specialty Chemicals Manufacturing Reaction Plant in Al Jubail, Saudi Arabia.

IRVING, Texas and AL KHOBAR, Saudi Arabia — Fluor Corporation has announced that it was awarded the engineering, procurement and construction of the Halliburton Specialty Chemicals Manufacturing Reaction Plant located in the PlasChem Park, Jubail, Saudi Arabia. Fluor booked the undisclosed contract value in the fourth quarter of 2018.

“Having completed the front-end engineering design, we are pleased to undertake the design and construction of this major investment that accelerates Halliburton’s strategic expansion of its fast-growing specialty chemicals business,” said Simon Nottingham, president of Fluor’s Energy & Chemicals business in Europe, Africa and the Middle East. “Fluor will use its full integrated solutions portfolio and its local execution capabilities to optimize the design and deliver a capital-efficient project with schedule certainty.”

The new chemicals facility will produce a wide range of specialty chemical products and intermediates to supply both the upstream and downstream oil and gas production industries. Fluor’s scope includes engineering, procurement, construction and commissioning.

Fluor’s Al Khobar office in Saudi Arabia will lead the project with the team that performed the previous front-end engineering design contract and will be supported by Fluor’s global chemicals experts.

PlasChem Park, located in Jubail Industrial City II next to Sadara’s new manufacturing complex, is a 12 km2 (4.6 mi2) industrial space dedicated for the chemical and conversion industries.