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
At the present time, Brazil is the 12th largest producer of oil in the world. GCA has successfully completed over 80 projects in Brazil, from reserve audits to due diligence, spanning the entire spectrum of the oil and gas industry, from upstream to downstream, and includes 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 download this brochure as a PDF please click here or in the sidebar (679 KB).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
Gaffney, Cline & Associates (GCA) is a global consultancy that has been offering technical, commercial, and strategic advice to the oil and gas sector for more than 50 years. GCA is well known as one of the leading suppliers of Reserves and Resources assessments, which are required for many purposes including statutory reporting, stock exchange listing, development planning,project finance, and asset valuation. GCA has undertaken many thousands of Reserves and Resources assessments covering all types of reservoirs and hydrocarbons and all the world's major petroleum basins. To illustrate the breadth and depth of GCA's work, brief summaries of some projects recently undertaken by GCA have been provided in the following pages.
Read on, or download a copy of the brochure, here.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
Mexico's ambitious program to attract foreign investment into the oil and gas sector is now well underway. Round One has so far resulted in a total of 30 exploration and extraction blocks awarded to 18 different operators. Pemex has recently announced it will seek JV partners for operations in the deepwater field areas as part of Round 1.4. Additionally, the National Hydrocarbon Commission (CNH) has just released the opening of Round Two with the introduction of 15 new shallow water exploration blocks available to be bid on in March of 2017 (Round 2.1). There are strong indications that another bidding package (Round 2.2) will be released in Q3 of 2016. As you can clearly see, Mexico is heating up!
To download this brochure as a PDF please click here or in the sidebar below (360KB).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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