News from Mexico

Fluor

Fluor Corporation announced that its ICA Flour industrial engineering construction joint venture with Empresas ICA, S.A.B de C.V signed a contract with Pemex Refinacion for the construction of the delayed coker unit that will be installed at the Miguel Hidalgo refinery in Tula, Hidalgo, Mexico. The total contract value is US$1.3 billion, and Fluor will book its US$650 million share of the contract in the fourth quarter of this year. ICA Fluor was awarded a contract for Phase I of the Residue Recovery Project for the facility in 2013. This Phase II contract involves providing detailed engineering, procurement and construction (EPC) services for the 86 000 bpd capacity plant. It is the first package to be converted to the EPC stage under the open book established in the Phase I contract. The mechanical completion on the project is scheduled for the second quarter of 2018.

Santos Fernandez, Director General, ICA Fluor “this project is a major step in the modernisation of Mexico’s oil processing facilities. We are proud to be in the position to support Pemex with our Mexican engineering and construction resources to advance the key goals set forth in its strategic plan.”

Pacific Rubiales

Pacific Rubiales Energy Corp. has entered into an agreement in principle with Alfa S.A.B de C.V in connection with the formation of a joint venture company in Mexico on a 50/50 basis. The joint venture will also follow for:

• The joint study of, and bidding on, assets in Mexico’s initial oil and gas bud round next year.
• The acquisition of services contracts with a view to migrating them to exploration and production contracts.
• The development of petroleum and natural gas assets in Mexico.
• The development of any business ancillary to the petroleum business in Mexico, including midstream projects.

Under the terms of the agreement, Pacific Rubiales and ALFA will jointly, discuss, evaluate, and undertake the joint venture prior to the first bid round. The joint venture remains subject to any applicable regulatory approvals and the determination of the joint venture structure pursuant to a definitive agreement.

Ronald Pantin, CEO, said “this joint venture represents a significant milestone for the company as we enter into the Mexican oil and gas industry with a world class partner. We are very pleased to be partnered with ALFA in this agreement, which brings together the strengths and advantages of both companies, to identify and pursue opportunities offered by the recent opening up of the Mexican energy sector to foreign investment.

“We believe Mexico provides a very large opportunity for us. An opportunity that is well aligned with our core expertise and track record in light and heavy oil exploration and development, as the leading independent Latin American focused E&P company. We intend to be active in the first open bidding rounds expected next year and anticipate that Mexico will provide another significant platform of future growth, for the company.”

Edited from press releases by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/refining/04122014/mexico-news-4-dec-2014/