Mexico’s state-owned petroleum firm Pemex has cancelled migrating contracts for the Magallanes, Panuco, Pitepec, Altamira, Amatitlan, Humapa and Miahuapan blocks, according to board minutes, as part of a plan to go it alone. The move comes after an arbitration panel ruled in favor of the company last month that said its contract with the government was illegal. Production has since increased by 70%. Petrofac expected migration of its contracts for the Magallanes and Arenque blocks. Pemex hopes to increase production to 2.6mn b/d from the 1.68mn b/d produced in April through the development of 22 recently discovered fields and mature fields using service contracts. However, President Andres Manuel Lopez Obrador's government has stopped all farm-outs, scheduled upstream auctions and migrations, closing off options for private investment in Mexico’s energy sector.
Mexico’s state-owned petroleum firm Pemex has cancelled migrating contracts for the Magallanes, Panuco, Pitepec, Altamira, Amatitlan, Humapa and Miahuapan blocks, according to board minutes, as part of a plan to go it alone. The move comes after an arbitration panel ruled in favor of the company last month that said its contract with the government was illegal. Production has since increased by 70%. Petrofac expected migration of its contracts for the Magallanes and Arenque blocks. However, President Andres Manuel Lopez Obrador's government has stopped all farm-outs, scheduled upstream auctions and migrations, closing off options for private investment in Mexico’s energy sector.