Pemex Output Goal ‘Uphill Battle,’ Forces Borrowing

Petroleos Mexicanos, Latin America’s largest oil company, is likely to miss its 2009 output goal even after lowering its production forecast, forcing the company to seek other sources of financing to pay for its largest ever capital spending plan. Pemex, which hasn’t increased production in 3 years, needs to raise output by at least 1.6 percent in the final six months of 2009 to reach a goal of 2.65 million barrels a day, according to data compiled by Bloomberg. Mexico City based Pemex lowered its forecast yesterday on an earnings conference call.....Complete Story

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Halliburton to Drill 170 Chicontepec Wells for $169MM

Oilfield services giant Halliburton Co. has won a $169 million contract to drill 170 wells Mexico's Chicontepec region, its first major project in the area, Petroleos Mexicanos said Thursday. Pemex, as the state oil company is known, has also awarded four contracts for about 140 wells each to local drillers, expanding its pool of suppliers for the expensive project. The new contracts underscore Pemex's efforts to accelerate spending and stabilize falling oil production, down by a fifth since peaking in 2004......Complete Story

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Citigroup Recommends Investment in Mexican Oil Giant

Banking giant Citigroup recommends investment in Mexican state run oil company Petroleos Mexicanos (Pemex) via its dollar denominated bonds. The firm urged investors to "hold" the bonds, reversing a previous recommendation to sell, Mexican media reported on Monday. However, the Citigroup did not give its highest rating of "overweight" to Pemex because of some negative operating data, the bank said in a report. Pemex's biggest oil field, Cantarell, has now had five consecutive years of production declines, bringing the company's overall production to its lowest level in 16 years.....Complete Story

"Chevron Locked Into Contracts.......Also Trying To Unload Big Foot"

"Chevron, BP Locked Into $200 Million Oil Wells Amid Crude Price Declines"
Chevron Corp. other oil producers are locked into drilling offshore wells that cost as much as $200 million each because of rig contracts that were signed when crude was soaring above $140 a barrel....Complete Story

"Pemex May Weather Financial Crisis by Avoiding Marginal Projects, CEO Says"
Petroleos Mexicanos, the state owned oil company, is in better shape to weather the global financial crisis because it avoids marginal projects such as oil sands, Chief Executive Officer Jesus Reyes Heroles said....Complete Story

"Chevron Approaches Oil Cos over Big Foot Farm Out"
Chevron Corp. has approached rival oil producers about the possibility of acquiring part of its stake in the Big Foot oil field in the U.S. Gulf of Mexico....Complete Story

"Mitsubishi, Petrobras Team Up to Build $830MM Deepwater Drillship"
Mitsubishi Corp and Petrobras have agreed to jointly build an $830 million ultra-deepwater drillship, slated for delivery in June 2010....Complete Story

Crude Oil Industry Headline News

"Pemex Plans $20B E&P Investment to Boost Production"
Pemex plans to invest nearly $20 billion this year in exploration and production, with $2.2 billion slated for Cantarell and $2.3 billion for Chicontepec....Complete Story

"A Rebound in Oil Prices May Presage Pick Up in Demand"
Oil dropped and rebounded after the EIA reported a larger-than-expected build-up in crude oil and gasoline stocks, a move that suggests the market is seeing a change....Complete Story

"Schlumberger's Net Falls 17%; Gould Says Job Cuts Affect 5,000 Worldwide"
Schlumberger Ltd., the world’s largest oilfield-services provider, said fourth-quarter profit fell 17 percent as a collapse in petroleum prices slowed exploration spending by customers. The company said job cuts “concern” 5,000 people worldwide....Complete Story