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Gulf of Mexico

High hopes for growth energy cost,” he said. “Mexico pays 70% investment to $31.3 billion.

Mexico’s road to passing recent higher electricity costs than US (its main When asked about the lack of shale energy reforms was forged by trading partner. development, Lozoya said: “Mexico much needed collaboration “The main aim of the reform is to have hasn’t developed it because we have new policy that allows Mexico to have plenty of more practical and pro? table in order to ? x the country’s competitive energy prices, and at the opportunities. Mature ? elds are the productivity growth, which has same time ramp up hydrocarbon produc- immediate opportunity.” been stagnating for nearly 30 tion, especially oil, which has been in Mexico hopes to launch its Round decline,” Lozoya said. Zero soon, which Lozoya said will be a years, Pemex CEO Emilio Lozoya

Lozoya told Pulitzer Prize-winning great opportunity for private investors. told an IHS CERAWeek audience

American author, speaker, and economic Currently, Mexico’s congress is waiting researcher Daniel Yergin that the shale gas on Pemex to submit its list of ? elds that in early March. Audrey Leon opportunity in the US, which has spurred it wants to keep for exploration and pro- listened in.

tremendous job growth, had an impact on duction. The assets not on the list will

Mexico’s government of? cials. be given up for sale. Pemex has until 21 he passage of recent reforms in March to submit its wish list.

“Clearly what’s happening in the US opened the eyes of our politicians,” he

Mexico was a perfect storm, a Lozoya said Pemex is targeting

T said. “To the extent that Mexico can rare event where the three main 3MMb/d of oil production by 2018. It replicate (that success), in a regulatory political parties (PAN, PRI, PRD) were currently sits about 2.52MMb/d.

environment that is conducive, is appeal- able to put aside differences to do what According to a January 2014 inves- ing. Cheap natural gas prices are re-indus- is best for the country, forming the Pacto tor relations presentation, Pemex said it trializing some sectors of the economy. por México (Pact for Mexico). recognized the opportunity in deepwater “The three main parties agreed on 95% Gulf of Mexico. Already, the company

Mexico has a similar opportunity. We’re committed to delivering on that.” of issues including energy challenges,” has acquired 124,790sq km of 3D seismic.

Pemex CEO Emilio Lozoya (pictured) Lozoya tweeted shortly before his “When we look at the offshore oppor- said. “The political leadership of the CERAWeek speech that Mexico needs to tunity, if you think about shallow water, president (Enrique Peña Nieto) and the invest in energy, at double the amount Pemex has tremendous infrastructure three parties were key. After 75 years, it Pemex will invest this year. This year there,” Lozoya said. “Deepwater, in the northern area of Mexican territory, it is easy was quite a historic occasion.” Pemex is due to spend US$27.7 bil- to use US infrastructure to get oil to market.

The main focus of the energy reforms, lion, 85% of which will be spent on “The bene? t of North American energy

Lozoya said, was to tackle a paradox. production and exploration. By 2018, infrastructure is huge. Shale extends into “Mexico has abundant reserves, but high Pemex hopes to increase total annual

Mexico, and US deepwater is similar to that of Mexico,” he said, continuing that shared infrastructure could be key to development, but there would also be a learning curve.

Another aspect of the energy reforms will be a new Pemex. Lozoya said that after 75 years, Pemex will change its cor- porate governing structure to include a new board, with ? ve independent mem- bers. Additionally, Lozoya said that the company will now be able to compensate workers with industry-competitive sala- ries. “This represents a way to develop and keep staff,” he said.

Lozoya also discussed the opening of new subsidiaries, and the possibility of splitting the business into upstream and downstream sections. The company already opened a new procurement of? ce in the US last year.

Pemex CEO Emilio Lozoya speaking at IHS CERAWeek 2014. Photo: Audrey Leon/OE.

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