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Sep 16, 2010

Karl to become hurricane, heads for eastern Mexico

MEXICO CITY (Reuters) – Tropical Storm Karl picked up power as it moved across the southwestern Gulf of Mexico and was expected to become a hurricane later on Thursday as it headed for the coast of eastern Mexico.

Karl’s maximum winds had increased to near 65 miles per hour, though no damage was reported at Mexican offshore oil drilling platforms in the area.

Sep 15, 2010

Schlumberger warns Mexico drug war hitting results

MEXICO CITY, Sept 15 (Reuters) – Worsening violence is
undermining energy projects in Mexico, oil services giant
Schlumberger Ltd said on Wednesday in a rare acknowledgment of
the toll a bloody drug war is taking on the energy sector.

Schlumberger, the Houston-based company that is one of
state oil monopoly Pemex’s [PEMX.UL] top service providers,
blamed the drug violence for a worse-than-expected performance
by its Mexican operations in the text of a presentation to be
given later on Wednesday by Chief Executive Andrew Gould.

Sep 9, 2010

Mexico’s Pemex 2011 budget 30 pct lower than request

MEXICO CITY, Sept 8 (Reuters) – The Mexican government
proposed on Wednesday a 2011 investment budget for state oil
monopoly Pemex that was more than 30 percent below what the
company had said earlier this year it would need.

The government of President Felipe Calderon proposed Pemex
[PEMX.UL] be allotted 286.3 billion pesos ($22.2 bln) for
capital spending in 2011, up 9 percent from 2010 but well short
of the 376 billion pesos the company wanted.

Sep 8, 2010

Mexico refinery repairs to take 2 wks-Pemex source

MEXICO CITY, Sept 8 (Reuters) – Mexico’s state oil monopoly
Pemex should be able to quickly repair the hydrotreater at its
275,000 barrels-per-day Cadereyta refinery that was damaged in
an explosion on Tuesday, a company source said on Wednesday. The repairs should be complete within 14 days, the source said, who spoke on condition of anonymity because he was not authorized to discuss the issue with the media. "It was an unfortunate accident because a worker was killed but the damage was not that great," the source said. Initial surveys of the refinery show no significant damage to any process units, the source added. The accident was caused by a leak in a compressor in the hydrogen recirculation segment of the coker gas oil hydrotreater, causing the explosion and fire that killed one worker and injured 10. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Take a Look: [ID:nN07216960] Factbox on Pemex refining operations: [ID:nN07234898] Graphic of refinery's location: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> The 40,000 bpd hydrotreater was immediately shut down following the accident along with the refinery's 54,000 bpd coker. Pemex [PEMX.UL] said it would cut crude oil runs at the refinery by 15,000 bpd to approximately 200,000 bpd while repairs were being made. The remaining 30 process units at the refinery are running normally. Some U.S. oil traders expressed skepticism that Pemex would be able to repair the unit as quickly as forecast. "It is hard to believe they can be back in two weeks. To come back on a high pressure hydrotreater in two weeks after a fire looks aggressive." The explosion at Cadereyta, Mexico's third largest refinery by distillation capacity and its most sophisticated facility, pushed up oil product prices on Tuesday on concerns it would force Pemex to increase fuel imports. Oil product traders said it might be difficult to tell if Pemex was increasing imports given its already significant presence in the market. Analysts said the incident would likely only influence prices in the very short term due to high fuel stocks in the United States. (Additional reporting by Joshua Schneyer in New York; Editing by Marguerita Choy)

Aug 30, 2010

Mexico sees big potential near Tsimin oil find

MEXICO CITY, Aug 30 (Reuters) – Mexico’s state oil company
Pemex is increasingly optimistic about the potential of what
appears to be a new cluster of light crude oil fields around
its Tsimin discovery, according to company executives.

The side-by-side Tsimin and Xux discoveries are believed to
hold the equivalent of 1.5 billion barrels of proved, probable
and possible oil reserves said Manuel Teran, a Pemex engineer
working on the discoveries, at a petroleum engineering
conference this weekend.

Aug 20, 2010

Exclusive: Mexico mulls first crude imports in decades

MEXICO CITY (Reuters) – Mexico’s state oil company Pemex is studying a plan to import crude for the first time in over 30 years to improve the profitability of its refineries, according to two sources familiar with the proposal.

The plan was first discussed by top managers of Pemex’s PEMX.UL refining subsidiary in March, the sources said.

Aug 4, 2010

Drug war puts Mexican oil industry on defensive

MEXICO CITY (Reuters) – State oil monopoly Pemex is struggling to sidestep mounting lawlessness in remote areas of northern Mexico, underscoring how the country’s escalating drug war has touched a once relatively immune industry.

Pemex and the private firms it employs have scaled back drilling, maintenance and other activities at some isolated sites in the natural-gas-rich Burgos basin due to deteriorating security, a senior executive with a large Pemex contractor in the region said.

Jul 29, 2010

Mexico oil, gas exploratory drilling at decade low

MEXICO CITY, July 29 (Reuters) – Mexico’s state oil company
Pemex has this year drilled the fewest wells in search of new
crude and natural gas reservoirs since 2001, raising doubts
over its drive to sustain production as major fields age.

The world’s No.7 oil producer neglected exploration for
years but has been forced to step up efforts since 2004 as the
natural decline of its aging giant oil fields threatens the
stability of government finances.

Jun 14, 2010

Deepwater spills and short attention spans

NUEVO CAMPECHITO, Mexico (Reuters) – Within a week of the explosion of Mexico’s Ixtoc offshore oil well in June, 1979, Misterveel Rodriguez and other village fishermen were pulling up nets choked with tarballs instead of red snapper.

Ixtoc’s blowout caused the world’s worst ever oil spill. More than 140 million gallons of crude poured into the Gulf of Mexico, eventually washing up on beaches in Texas, hundreds of miles away. That is roughly three times more than what has so far spewed into the Gulf of Mexico from the Deepwater Horizon disaster.

May 25, 2010

BP’s Gulf battle echoes monster ’79 Mexico oil spill

MEXICO CITY (Reuters) – BP Plc’s race to cap its ruptured oil well in the Gulf of Mexico is eerily similar to a 1979 accident off the coast of Mexico that caused the world’s worst oil spill.

In both cases natural gas flowed unnoticed into the well being drilled, causing an explosion. In both cases a critical piece of fail-safe equipment — the blowout preventer — failed. And in both cases the operators struggled to quickly staunch the flow of oil into the Gulf of Mexico.