Back on Feb 5, 2009 I reported on this site how Sinopec was bidding in Mexico for a oil contract. Well... The Texan beast, Schlumberger has won the bid. Thought I would update.
Feb 5 article -- Sinopec competes against Schlumberger Ltd and Halliburton Co. for drilling contracts in Mexico
Showing posts with label China-Mexico. Show all posts
Showing posts with label China-Mexico. Show all posts
Thursday, March 12, 2009
Thursday, February 5, 2009
China-Mexico: Sinopec competes against Schlumberger Ltd and Halliburton Co. for drilling contracts in Mexico
China's Sinopec Group has become the first Chinese oil company to venture into Mexico's energy industry. Sinopec is competing for two large drilling contracts in Mexico's Chicontepec oil basin according to Compranet, the procurement website of the Mexican Government.According to this article from the Dow Jones Newswires you can access via Rigzone, "Even if Sinopec loses the upcoming tenders, the Chinese heavyweight appears to be taking a long-term approach in Mexico. Next week, Sinopec executives will give a presentation to state-run Petróleos Mexicanos on the company's land and offshore drilling equipment, said an industry executive familiar with the meeting."
Sinopec has already expanded into markets in Africa, South America and Russia in order to ensure Chinese refining capacity and oil supplies. If Sinopec wins the bidding process this will be China's first major energy investments in Central America.
Officially Petroleos Mexicanos (PEMEX), the state oil company of Mexico maintains a monopoly on oil sales, thus Sinopec can only be hired as a service contractor. This means, Sinopec must see winning these bids as a sound investment.
PEMEX will in effect be paying the winner cash to develop and drill for oil on behalf of PEMEX. Recent reforms in the oil industry entitle PEMEX to offer incentives to contractors who finish their work ahead of schedule. All in all, Sinopec is hoping to generate a nice chunk of cash from pursuing this deal.
It also doesn't hurt Sinopec's image if it can win the bidding at a fair market price for a assets that both Schlumberger and Halliburton would like to get their hands on.
Friday, July 11, 2008
China, Mexico etablish strategic dialogue mechanism reports Xinhua News
BEIJING, July 11 (Xinhua) -- China and Mexico announced the establishment of a strategic dialogue mechanism on Friday during talks between Chinese President Hu Jintao and his Mexican counterpart Felipe Calderon Hinojosa...................................
Chinese President Hu Jintao (R) shakes hands with Mexican President Felipe Calderon Hinojosa during the welcoming ceremony Hu hosts for him at the Great Hall of the People in Beijing, capital of China, July 11, 2008. (Xinhua Photo)
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During the talks, Hu put forward a four-point proposal to cement Sino-Mexican relations:
--Strengthening political dialogue, maintaining high-level contact, and realizing the action plan from 2006 to 2010 to promote strategic partnership;
--Boosting a win-win economic cooperation. The Chinese government encourages its enterprises to invest in Mexico's infrastructure including ports, roads, and hydroelectric stations, and supports cooperation on mining, telecommunication, agriculture and the fishing industry;
--Pushing personnel exchanges in the fields of culture, education, traditional medicine and social development;
--Promoting multilateral cooperation and consultation on major international affairs so as to safeguard the legal rights of developing countries..................
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