GCA has successfully completed over 80 projects in Brazil, from reserves audits to due diligence, spanning the entire spectrum of the oil and gas industry, from upstream to downstream, and including energy strategy and portfolio management advice. The list of GCA's clients is equally diverse and ranges from small independent E&P companies to major and independent oil companies, national oil companies, government ministries and lending/investment institutions.
To keep our clients ahead in the highly competitive energy business, GCA has also carried out various multi-client strategy studies and engaged in such varied activities as developing licensing rounds for petroleum exploration and development, marketing stranded gas resources and assessing the impact of changes in petroleum legislation.
To download this brochure as a PDF, click here or in the sidebar (698 KB).Read more
Mexico’s ambitious program to attract foreign investment into the oil and gas sector has been underway for some time. Round One had 39 blocks awarded out of 55 total blocks offered. Round Two resulted in 50 of 68 blocks being awarded, including 19 deepwater blocks in Round 2.4. Round 3 got off to a good start with 16 of 35 onshore blocks being awarded.
The Pemex Associations or “Farmouts” have also attracted attention with three contracts being signed between Pemex and International E&P companies looking to jointly invest and develop the fields.
While other licensing rounds and farmout rounds have been postponed or delayed, the fact remains that a new ecosystem of operators, regulators, service companies, and private equity has sprung up and taken root in Mexico.
To download this brochure as a PDF, click here or in the sidebar (472KB).Read more
As the "easy oil" disappears, options for future production will be based on “Unconventional Reservoirs” (Tight/Shale Oil), on the implementation of best management practices and application of Improved Oil Recovery processes (IOR) predominantly on Heavy, Extra Heavy Oil and Tar Sands. While much of the recent discussion on where the marginal barrel of new oil will come from focuses on unconventional plays, it misses the equally large upside from already discovered fields, in the form of IOR.
This article discusses the nature of IOR projects, identifying reasons why insufficient attention is paid in the design of IOR pilots, reducing the potential of booking additional reserves, leading the industry to come up short in the contribution that this activity could bring.Read more
A medida que desaparece el "petróleo fácil", las opciones de producción futura estarán basadas en "no convencionales" como el petróleo de esquistos (Tight/Shale Oil), en la implementación de las mejores prácticas gerenciales y en la aplicación de los procesos de recuperación mejorada de petróleo (IOR por sus siglas en Ingles) predominantemente en yacimientos de Petróleos Pesados, Extra Pesados y Arenas Bituminosas. Si bien gran parte de la reciente discusión acerca de dónde vendrá el barril marginal de petróleo nuevo se centra en "no convencionales", de igual manera se ha subestimado el gran potencial de producir petróleo adicional de campos maduros mediante procesos de IOR.1
En este artículo se discute la naturaleza de los proyectos IOR, identificando las razones por las razones por las cuales se presta poca atención al diseño de los pilotos de IOR, disminuyendo así el potencial de incorporar reservas adicionales de petróleo, llevando a la industria a acortar la contribución que esta actividad podría traer.Read more
Ever since the announcement of the 2013 Reforma Energética in Mexico, the international energy industry has held its collective breath for the opportunity to invest in the so called “Pemex Farmouts”. This article explains the challenges that the process has faced, and offers some suggestions to try and help PEMEX, and the regulators involved in the process (Secretaria de Energía (SENER), Comisión Nacional de Hidrocarburos (CNH), Secretariat de Hacienda y Crédito Público (SHCP) forge a path forward.Read more
Billions of barrels of hydrocarbons contained within world class carbonate reservoirs lie beneath circa two kilometres of salt in the Santos and Campos Basins of offshore Brazil. At the time that the pre‑salt petroleum system was developing (Aptian), Brazil was immediately adjacent to the Salt Basins of West Africa extending from the Niger Delta in the north to the Walvis Ridge in the south (Figure 1). With the success of the Brazil pre-salt, it is no surprise that interest in the pre‑salt plays of West Africa has developed, but to what extent is Brazil an analogue?Read more
The Acquisition and Divestment (A&D) market has changed. Previously, exploration and discovery upside was sought after with new development potential or undeveloped acreage firmly part of the transactional value expectation.
However the A&D market has moved, with value now focussed on mature, developed assets that bring instant cashflow. With the change in focus, the due diligence of assets for a potential transaction also requires modification, with the focus now being on enhancement and improvement of current operations, and as such, asset due diligence now requires far more detailed consideration of the surface facilities, costs and abandonment liabilities.Read more
Unconventional reservoirs present many technical challenges to those charged with quantifying reservoir character and performance (Bust, Majid, Oletu & Worthington 2013). One of these challenges concerns the identification of net pay. The role of net pay in unconventional reservoirs continues to evolve as a design criterion for reservoir stimulation and well completions. Unlike conventional reservoirs, shale-gas development is not yet at the stage where longstanding net-pay protocols have been tried and tested. Therefore, any protocol has to be regarded as being at a pilot stage, especially in view of the complexity of shale-gas systems.Read more
In February, GCA reported on the state of Argentina as its new president settled in (see No Need to Cry for Thee, Argentina). The article concluded that the issues to be addressed are not about the rocks (which specifically holds true for the excellent Vaca Muerta shale) but about the cost of operating.Read more
Interested in Mexico?
Scott Monette, of GCA's Houston office, presented a Webinar: "Mexico Energy Reform - Lessons Learned" on Wednesday March 23rd.Read more
With oil priced at US$67.60 per barrel, natural gas at US$7.50 per MMBTU, and a rig count that has been going up over the past five years, it may be tempting to think that you have just stumbled across an old article. However, this is very much 2016 Argentina, and with a new market-oriented government just installed, you would also be thinking that seats on the flights to EZE would be getting hard to come by!Read more
On December 10th, 2014, Gaffney, Cline & Associates delivered a presentation to an SPE gathering in Houston. Discussion focused on doing business in Mexico under the new energy rules and regulations.
GCA’s presentation, which addresses competiveness by looking at resource potential, fiscal balance and ancillary risk factors is now available for download (2MB).Read more
Despite recent increases in exploration expenditures, Mexico’s 3P (Proved + Probable + Possible) reserves have been in steady decline since the 1980s. Reversing this decline will require a substantial level of foreign investment that can be sustained for decades. This week, Gaffney, Cline & Associates (GCA) provides an overview of the fiscal balance and stability factors potential investors are likely to consider when comparing Mexico to regional competitors for upstream investment.Read more
Mexico’s ambitious program to attract foreign investment into the oil and gas sector took important steps forward this week with the enactment of secondary petroleum sector legislation and the announcement of the areas to be awarded to Pemex in Round Zero. GCA provides an overview of the resource potential in Mexico, and how that potential compares to some of Mexico’s regional competitors for upstream investment.Read more
Mexico has embarked on an ambitious programme of oil and gas sector liberalization aimed at attracting foreign investment. A constitutional reform passed in December 2013 calls for the end of the 75-year monopoly on upstream oil and gas production held by national oil company Petroleos Mexicanos (PEMEX) and will lead to the creation of a number of new regulatory agencies. Private companies could be invited to participate in competitive bid rounds for new upstream acreage as early as 2015. This article is a summary of the new legislations and what the opportunities could be.Read more
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