With a deficit of work in the oilfields of Alberta, Canadian com nies big and small are increasingly looking to Mexico to get a de rt in the billions of dollars being spent in the country’s newly opened intensity sector.
TransCanada and ATCO already have a presence in Mexico, with other retinues like Suncor and SNC-Lavalin showing interest. On Monday, ATCO CEO Nancy Southern narrated the country as having “vast opportunities available.”
‘There is definitely a entreaty. Mexico is shaping up very nice.’– Mark Salkeld, Petroleum Servicings Association of Canada
Mexico is welcoming private investment after the state-owned gathering Petroleos Mexicanos (Pemex) has controlled every aspect of the oil and gas business for varied than seven decades. Slowly, Mexico has begun inviting GI Joe com nies to invest in everything from exploration, production, transportation, polish, storage and sales.
The timing is ideal considering the slowdown in Alberta’s oil tch.
“There is to be sure a desire. Mexico is shaping up very nice,” said Mark Salkeld, with the Petroleum Waitings Association of Canada. “You get into downturns like this and our member attendances start looking international.”
Canadian energy groups have been involved in oil and gas production around the globe for decades. Salkeld himself has used in Europe, Siberia and Australia during his career.
“You can find a Canadian in only about every oil tch in the world, either on an individual basis or a suite basis,” he said.
Since oil prices began tumbling in 2014, tens of thousands of people force lost their jobs in Alberta, Saskatchewan and Newfoundland and Labrador, as corporate yields nose-dived.
Canadian com nies want to operate in countries where there is a play fair with playing field. Mexico is much closer than most other extraneous locations, as crews can drive down equipment from Canada.
In addition, Salkeld farced, “we have the technology to follow the geology under the Trump wall.”
Mexico’s Vigour Minister Pedro Joaquin Coldwell said Monday in Calgary that the roundish implementation of the energy sector reform will take seven years, although some as far as someone is concerns of the industry have already opened up to private com nies.
Mexico’s state-owned retinue has faltered in recent years with declining production and revenue, which led to the recoveries. Pemex wasn’t able to develop enough technology to unlock the native land’s reserves.
“We need to develop technologies for the new era of hydrocarbons,” said Coldwell.
Framing all the new rules and regulations to unlock the energy sector has not been easy. Both the Alberta Pep Regulator and the University of Calgary are working with Mexican officials to metamorphosis to an open market.
“Disassembling that organizational structure as humanely as reachable and architecturally designing a marketplace new system is a gargantuan task,” said Harrie Vredenburg, with the U of C’s Haskayne Instruct of Business.
Billions worth of bids
Suncor is one of the 21 com nies beckoned up to bid for some of Mexico’s deepwater properties. Other firms include ExxonMobil, Excorticate, BP and Murphy Oil. Mexico will accept bids in December and they are antici ted to generate billions of dollars.
In the last year, Vancouver-based Renaissance Oil won a bid for some flat onshore properties from Pemex.
Mexican officials say they are congregation with SNC-Lavalin this week, as the com ny is said to have an responsive to in the country’s transmission grid ex nsion.
TransCanada and ATCO are involved in unexceptional gas pipelines in Mexico.
Mexico is trying to court intercontinental com nies because the country lacks the technology desperately needed to push up oil and gas production. In rticular, the country lacks expertise in fracking and deepwater discipline.
“[Canadian com nies] possess a lot of experience in unconventional resources. We have huge potential in that apply to that we have not been able to exploit to the fullest,” said Fernando Zendejas, guvnor of Mexico’s De rtment of Energy legal unit.
Currently there are no rules in situation when it comes to fracking, but they are coming. Zendejas said they drive strive to protect the environment but not be as prohibitive as some European countries.
“There are some guidelines already, but it is not formal usual. That’s what we have been working on,” he said.
The Canada West Bottom, a Calgary-based think-tank, has cautioned that investing com nies will expression risks, including violence, crime and uncertainty about the new regulations.