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Meindert van Genderen

Mexican Energy - Marstrat

Mexico is open for business and partnership opportunities

Meindert van Genderen |

Mexico is a leading oil and gas producer, ranking as 10th largest producer globally and 18th in terms of proven reserves. Three quarters of the production is offshore in shallow waters. The federal republic of Mexico is the world’s 15th largest economy by GDP and the 11th by population, with 120m inhabitants.

 

ENERGY REFORM

In 2012 the president Peña Nieto was able to bridge a long endless political gridlock and create a multi-party ‘Pacto de Mexico’, the starting point for significant constitutional reforms in education, energy, banking and telecom. The Energy Reform of 2014 marked the end of several decades of state-monopolies, opening all energy markets to international operators. The aim of this Energy Reform is to increase the national production and export of oil and gas, and to lower the cost of electrical power.

OIL & GAS PRODUCTION

In respect of hydrocarbons, the increase in production will be achieved by selling exploration and production rights for 85% of Mexico’s prospective reserves to international and local oil companies, mobilizing far more exploration capacity than the national oil company could mobilize. A transparent public tendering system in introduced. which is well regulated and very transparent: all relevant documents are placed online. The Energy Reform regulations are based on best practices borrowed from oil producing countries around the world, and applied transparently. Several autonomous federal agencies, such as CNH and CRE, are put in charge of overseeing a transparent and neutral regulatory environment.

The energy markets are converted into a hybrid system of public and private producers.

In December 2016, the first deepwater blocks were auctioned, which attracted interest from around the globe. The auction became far more successful than predicted, with almost all of the global oil producers, including BP, Chevron, CNOOC, ENI, Exxon, Statoil and Total, acquiring Mexican deepwater production rights.

ENERGY INFRASTRUCTURE

Lowering the cost of electricity is a secondary aim of the Energy Reform, and this decrease will be achieved by expanding and liberalising upstream production and by adding pipeline infrastructure for the import of shale gas from the US, run by independent operators. Gas transport expansion projects with an aggregate value of USD 10bn over 5 years have been committed, aimed at doubling the import of cheap shale gas from the USA. The main pipeline project is the 800km, USD 2bn offshore subsea gas pipeline from Texas to Tuxpan, which will be constructed by Allseas from mid 2017 onwards.

PORT INFRASTRUCTURE

Beyond the Energy Reform , an ambitious, multi-year National Infrastructure Plan is implemented, which includes a USD 5bn port modernization and expansion strategy, aimed at facilitating trade by creating better deepsea cargo terminals. A secondary aim of this plan is to create new logistic hubs for the energy industry on the central and northern stretches of the Mexican Gulf coast, in ports such as Coatzacoalcos, Veracruz, Tuxpan and Altamira and – potentially – Matamoros. Some of these ports may in future benefit from obtaining a Special Economic Zone status.

OUTLOOK

The Energy Reforms have placed Mexico in a good position for future growth. Although the all-important relationship with the USA is under starin, Mexico’s 80% wage differential will keep it compatible. The local supply chain has decent capabilities for shallow water production, but is not competitive with international markets. The entire Mexican energy value chain requires more assets, technology and know-how.

MARSTRAT

Mexico is open for business and partnership opportunities, and welcomes cooperation with the Dutch industry. Marstrat is actively involved with the Mexican energy markets, by providing tailor-made advice to the industry and to the Dutch government. Already in 2015, Marstrat organised the Mexico-Netherlands Offshore Energy Forum, and the incoming mission for Mexican energy executives. This year Marstrat will organise, together with partners GGNI and EDI, a 2-week Executive Training Course of for Mexican managers in the energy sector. The training will take place early July in Mexico City, and early October in the Netherlands.

 

 

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Going the extra mile with special transport projects of ships or cranes.

Meindert van Genderen |

Specific jobs need a specific approach. In this context Marstrat was recently asked to provide advice on several special maritime transport projects. Very diverse projects such as the drytow transport of an offshore vessel, the float-in, float-out transport of a navy ship, and  to the lift-on, lift-off transport of large rubber tyre gantries.

For their clients the Marstrat team performs a far wider role than the average transport broker, without extra costs. Responsible partner Meindert van Genderen, a naval architect, has extensive operational and commercial experience  in specific heavylift and towage.

From this background, Marstrat takes a holistic view on any project in order to design and negotiate the contract terms to fit the optimal risk profiles of Charterers and Owners.  Van Genderen: “Each specific project has its own particular challenge in respect of engineering, shore facilities, insurance aspects, maritime risks and market circumstances.  Planning these projects often requires extensive loading simulations and careful sea passage planning, as in most cases the cargo has not been specifically designed to cope with the substantial acceleration forces that may occur in rough seas.”

“During execution, we continue to perform an active role as liaison between Owners and Charterers, and where and when needed, as independent advisor to them. The ultimate aim is to have the project performed safely, efficiently and without financial or legal surprises to the contractual parties. So therefore it is safe to say: at Marstrat we definitely go the extra mile for our clients!” Van Genderen explains.

offshore energy

The Mexico Netherlands Offshore Energy Forum

Meindert van Genderen |

MEXICO’S ENERGY REFORM IN ACTION

CONTEXT

  • A follow-up of the successful Dutch trade mission on Energy to Mexico, Sep 2015
  • Offshore Mexico : a market with huge potential in the next years, even at low oil prices
  • Window of opportunity for closer relations between Dutch and Mexican networks

MEXICO’s OIL AND GAS CAPABILITIES

  • World’s #10 in production; #18 in proven reserves (abt 10bn BOE)
  • Offshore underexplored, prospective offshore reserves of 40bn BOE, mainly deepwater
  • Majority of offshore production to date has been relatively easy oil, in shallow water

MEXICO’s ENERGY REFORM OF 2014 – OIL & GAS PRODUCTION

  • Constitutional Energy Reform 2014 : state monopoly to end, Pemex to be autonomous
  • Mexico is auctioning 80% of its prospective reserves from 2015 – 2019
  • Transparent auction system, reasonable contract terms, international competition
  • New and existing Mexican entities teaming up with IOC’s, NOC’s and independents

MEXICO NATIONAL INFRASTRUCTURE PLAN 2014 – GAS TRANSPORT NETWORK

  • National Plan 2014: gas transport network is transferred to independent operators
  • Expansion projects of USD 10bn committed, main focus on import of US shale gas
  • Largest contract for 2015 is the USD 3bn, 800km offshore gas pipeline Texas-Tuxpan
  • OPPORTUNITIES FOR DUTCH CLUSTER
  • Entire Mexican value chain requires more assets, technology and know-how
  • Realistic mix of international & local content – requirements range 10 – 25%
  • Market is open for business and partnership opportunities

THE MEXICO-NETHERLANDS OFFSHORE ENERGY FORUM

  • Presentations by Mexican companies, focus on offshore E&P and pipelines
  • Speakers and delegates from a.o. Mexico’s Ministry of Energy, Sierra Oil & Gas,
    the State of Tabasco and the Dutch Ministry of Foreign Affairs

DATE, LOCATION, REGISTRATION

PROGRAM

LOCATION: ARENA 2, CONFERENCE AREA, HALL 8

10:00 Welcome and introduction
Guido Landheer, Deputy Director, General Foreign Economic Relations,Ministry of Foreign affairs in the Netherlands

10:10 Eduardo Ibarrola Nicolin, Ambassador of Mexico to the Netherlands
Energy Reform, Round 1 and international cooperation

10:20 Mr G. Heller Green, Ministry of Energy in Mexico, Director General
Investor Relations and Promotion

10:50 Round 1.1 – new opportunities in shallow water
Pieter Kapteijn, CTO and Director Mature Fields, Sierra Oil & Gas

11:20 The Mexican infrastructure plan 2014, port for offshore
Mr David Rodríguez Rosario, Minister of Economy, State of Tabasco

11:50 Mexico’s offshore pipeline project
Mr Huub van Haelen, Managing Partner, Global Gas Networks Initiative

12:20 Q&A to the Panel discussion

12:35 Closing remarks, Guido Landheer

12:45 Networking lunch for all Forum participants in the lounge

FOREING SPEAKERS PROFILE

MINISTRY OF ENERGY IN MEXICO

Mr Gabriel Heller Green, Director General of Investor Relations & Promotion

  • Gabriel Heller Green holds a Bachelor’s Degree in Economics from the Instituto Tecnologico Autonomo de Mexico (ITAM) and an MBA from the London Business School. Within SENER, Mr Heller Green serves as the head liaison with industry participants, and manages investment promotion and the development of public policy and industry regulations. He has an extensive former experience in the energy sector within the PMI Group, a subsidiary of PEMEX, both in Mexico City´s headquarters as well as in the Group´s Houston office. He began his career at the Central Bank of Mexico.

STATE OF TABASCO

Mr David Gustavo Rodríguez Rosario, Minister of Economic Development

  • David Gustavo is an economist from the Mexican Autonomous Institute of Technology (ITAM), where he also studied a Master of Science in Public Policy. He holds a Master of Science in Social Protection Financing and concluded his Ph.D. studies at Maastricht University. He has held previous functions as researcher at the Mexican Commission on Macroeconomics and Health, and as consultant for UNICEF in Central Asia. David has taught economics of the public sector and applied statistics at the master level and to doctoral students in Europe, Africa and Asia

SIERRA OIL & GAS

Mr Pieter Kapteijn, Chief Technology Officer and Director, Mature Fields

  • Pieter Kapteijn graduated from Delft University, The Netherlands, with a MSc in Control and Systems Engineering. Before joining Sierra Oils in 2014, he was director corporate technology and innovation with Maersk Oil in Denmark. Before Maersk Oil, Mr Kapteijn spent 28 years with Shell Exploration and Production in various positions, where he was the pioneer who initiated and managed Shell’s global Smart Wells and Smart Fields programs.