Sunday, January 26, 2014

Russia #2 oil producer Lukoil enters deal with Mexico's Pemex, Lukoil to share information on deep water and shale deposits-Reuters

1/24/14, "Mexico draws over $7 billion in foreign investment at Davos," Reuters, by Martinne Geller and Dmitry Zhdannikov

"Oil Prospects"

"Mexican state-run company Pemex will sign a cooperation memorandum with Russia's No.2 oil producer Lukoil (LKOH.MM) on Friday, Pemex chief executive Emilio Lozoya told Reuters, as the country is opening up its energy sector in a move to boost production.

Lozoya said that Pemex and Lukoil would share information on the deep water and shale deposits that Mexico currently lacks the expertise to tap.

The planned cooperation between Lukoil and Pemex comes after Pena Nieto last month signed a bill into law that ended the country's 75-year-old oil and gas monopoly.

Under the legislation, which is still being mapped out, foreign companies will be able to enter the sector as Pemex is seeking to bring in expertise and boost efficiency.

"There are dozens of new players who now come and look at the opportunities that are opening up in Mexico," Pemex CEO Lozoya said.

Lozoya said he met with various companies in Davos that expressed interest in exploration and production projects in Mexico as well as refining, petrochemicals and transportation businesses that are now open to private investment.

As a private company, Lukoil is struggling to get large new deposits in Russia, including offshore, and is actively pursuing a foreign expansion to maintain its production levels."


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