Mexico, through the State oil company Petróleos Mexicanos (PEMEX), plans to invest USD 20 billion per year up to 2025. The aim is to increase both production and proven levels of hydrocarbons reserves.
Oil & Gas Sector in Mexico
The UK and Mexico face similar challenges with declining reserves and a need to maintain
energy outputs as well as a need to protect the environment. Mexico, through the State oil
company Petr?leos Mexicanos (PEMEX), plans to invest USD 20 billion per year up to 2025.
The aim is to increase both production and proven levels of hydrocarbons reserves.
In 2010, Mexico was the seventh-largest oil producer in the world. PEMEX is one of the largest
oil companies in the world and ranks among the top 20 in terms of gas production. PEMEX is
the sole producer of crude oil, natural gas and refined products in Mexico.
PEMEX is focusing on maintaining production in declining fields, more efficient exploitation of
reserves, a move towards deep-water production and to increase security and minimise
environmental impact. Deep water accounts for more than half of PEMEX's prospective
hydrocarbons reserves, and the company has drilled only 16 deep water wells to date. Mexico
has oil reserves of 45 billion barrels and proven reserves equivalent to 9.2 years of production.
In 2010, PEMEX announced and tendered its first incentive based contract model for exploration
and production. In 2011, PEMEX tendered three incentive exploration and production contracts,
two of which were won by UK company Petrofac. The second round of mature field contracts is
expected to be announced in Q4/2011 and will include 6 blocks (4 onshore and 2 in shallow
Mexico?s natural gas consumption is rising primarily due to greater use of the fuel in power
Mexico is a net importer of natural gas, so higher levels of gas consumption will likely depend
upon higher imports. The further development of the Mexican gas market will need a significant
growth in infrastructure with construction and maintenance of terminals, pipelines and other
specialized technology which UK companies can supply.
During 2012 there will be a series of contracts from PEMEX for development of onshore and
offshore fields, including parts of the heavy oil basin of Chicontepec and deep water projects in
the Gulf of Mexico.
There will be opportunities in areas such as productivity, redesign and maintenance of wells,
seismic surveys, environmental restoration/studies and infrastructure works.
PEMEX is actively seeking new technology and is promoting R&D projects through the
Mexican Petroleum Institute to tackle the heavy oil and deepwater challenges.
Onshore and Offshore Opportunities
? Platform design and construction
? Decommissioning of production facilities
? Design, construction, installation and commissioning of pipelines
? Receiving terminals and production facilities
? Exploration and appraisal drilling
? Production operations
? Environmental control
? Regional geological studies (including 3D and 2D seismic)
? Reservoir appraisal and exploration techniques
? Training and education
? Deep water technology
? Develop heavy and extra heavy oil recovery technology
Latest export opportunities ? oil & gas
Latest export opportunities - Mexico
Getting into the market
Whilst the great majority of the oil and gas industry is in hands of PEMEX, with the energy
reforms passed in 2008 there are great opportunities for private investors that want to enter the
oil and gas market in Mexico.
There are opportunities for UK companies, particularly for equipment and service suppliers.
PEMEX has developed a strategic plan that considers that private investment will cover over 50
fields over the next 20-30 years and represent an investment of USD 30 billion. To ensure their
participation, UK companies might explore the possibility of establishing partnerships with
current PEMEX suppliers.
More about doing business in Mexico.
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
in country - or contact your local international trade team.
? Irasema Mendoza, British Embassy Mexico City. Tel: (+52 55) 1670 3234 or email:
? Enrique Cornejo, British Embassy Mexico City. Tel: (+52 55) 1670 3318 or email:
? Elizabeth Briones, British Embassy Mexico City. Tel: (+52 55) 1670 3244 or email:
Contact your local international trade team
First International Congress en Logistics, Transport and Distribution of Hydrocarbons
1-3 February 2012
Petroleum Exhibition & Conference of Mexico (PECOM)
June 12-14 2012
Energy Day Mexico City
September 2012- 11th Energy Day
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events ? sector
More about OMIS and other UKTI services for exporters