{"id":2351,"date":"2020-07-16T15:07:18","date_gmt":"2020-07-16T21:07:18","guid":{"rendered":"http:\/\/accesstomexico.mx\/blog\/?p=2351"},"modified":"2020-07-19T15:12:34","modified_gmt":"2020-07-19T21:12:34","slug":"mexican-regulator-stops-clock-on-ep-deadlines","status":"publish","type":"post","link":"https:\/\/accesstomexico.mx\/blog\/mexican-regulator-stops-clock-on-ep-deadlines\/","title":{"rendered":"Mexican regulator stops clock on E&P deadlines."},"content":{"rendered":"\n
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ARGUS<\/a><\/p>\n\n\n\n

Mexico’s national hydrocarbons commission (CNH) will suspend the clock on exploration and production (E&P) deadlines under contracts awarded to operators amid the Covid-19 pandemic.<\/p>\n\n\n\n

The agreement provides “legal certainty to operators to enable them to continue working efficiently,” CNH general counsel Ramon Massieu told commissioners today.<\/p>\n\n\n\n

CNH has received 25 force majeure<\/em> notifications on oilfield work and 13 requests to extend exploration periods since Covid-19 forced lock-down measures across Mexico.<\/p>\n\n\n\n

The agreement applies to all contracts and resolves the force majeure<\/em> and extension requests without imposing sanctions on operators.<\/p>\n\n\n\n

While E&P was classified as essential and allowed to continue during the pandemic, companies have cut capital expenditures and re-programmed work amid operating restrictions including breakdowns in supply chains.<\/p>\n\n\n\n

Global crude prices have been volatile since March following a price war between Saudi Arabia and Russia and the crash in demand caused by the spread of Covid-19. While the average price of a representative basket of Mexican export grades has risen to $38\/bl, it remains well below last year’s $55.63\/bl.<\/p>\n\n\n\n

The new rules will take effect once published in the official gazette, after which operators will have 20 days to submit adjusted work programs.<\/p>\n\n\n\n

The suspension will run for six month or until the government declares an end to the health emergency announced in March.<\/p>\n\n\n\n

CNH does not have the legal faculty to amend E&P periods under acreage assigned to state-owned Pemex, but it will offer technical assistance to the energy ministry in determining how best to modify existing assignments.<\/p>\n\n\n\n

Mexico is gradually easing lockdown although the number of Covid-19 infections continues to increase. Some 39,906 deaths of Covid-19 have been recorded in Mexico, although authorities recognize the number could be several multiples higher.<\/p>\n\n\n\n

Pemex has reported 204 Covid-19 deaths among employees, thought to be one of the highest death rates among oil companies. Independents have not published data.<\/p>\n\n\n\n

Around 80pc of the 100 contracts awarded since 2014 are in the exploration phase, with just 14 in production. Approved investments total $40.4bn so far.<\/p>\n\n\n\n

Independent operators had originally pledged to produce 280,000 b\/d of crude by 2024 – up from 56,190 b\/d in May – while state-owned Pemex had targeted 2.6mn b\/d \u2014 up from 1.61mn b\/d in May \u2014 within the same timeframe.<\/p>\n\n\n\n

Rebecca Conan. (2020). Mexican regulator stops clock on E&P deadlines. USA. ARGUS. <\/em>Recuperado de <\/strong><\/p>\n\n\n\n

https:\/\/www.argusmedia.com\/en\/news\/2123943-mexican-regulator-stops-clock-on-ep-deadlines?backToResults=true<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

ARGUS Mexico’s national hydrocarbons commission (CNH) will suspend the clock on exploration and production (E&P) deadlines under contracts awarded to operators amid the Covid-19 pandemic. The agreement provides “legal certainty to operators to enable them to continue working efficiently,” CNH […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2351","post","type-post","status-publish","format-standard","hentry","category-uncategorized","clearfix"],"_links":{"self":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/2351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/comments?post=2351"}],"version-history":[{"count":1,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/2351\/revisions"}],"predecessor-version":[{"id":2353,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/2351\/revisions\/2353"}],"wp:attachment":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/media?parent=2351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/categories?post=2351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/tags?post=2351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}