Subscribe Share/Bookmark

Sunday, April 4, 2010

Oil and Gas Translations

JAPAN COMES TO THE AID OF MEXICO

The Japan Bank for International Cooperation will lend $600 million to help Mexico's state-owned Petroleos Mexicanos (Pemex) develop oil and gas fields in the Chicontepec Basin, northeast of Mexico City.

The loan – said to be one of the largest ever for a Mexican oil field project – is designed to help the country maintain crude output at current levels over the long term.

The oil and gas fields earmarked for development have proven reserves of 700 million bbl of crude oil, according to JBIC.

Pemex targets a production level of roughly 510,000 b/d of crude in 2023, one-sixth of Mexico's present output.

Pemex also aims to yield some 600 million cubic feet of natural gas a day the same year, 10% of the country's current output.

Some of the gas produced there will be supplied to the thermal power stations of Mexican-based independent power producers owned by Japanese trading houses.

In addition to easing the financing for Mexico’s development, Japan’s loan is aimed at strengthening Tokyo's relations with Latin American oil-producers in an effort to ease its heavy dependence on Middle Eastern supplies.

As Japan imports 90% of its oil from the Middle East, the importance of diversifying to other suppliers is obvious. However, do you think Japan’s aim with Mexico will succeed? Will this help Japan open the door to other Latin American suppliers?

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.