Newswire: Latin America - Region

[Venezuela] -- Oil-Services Law to Affect Some Foreign Companies
New nationalization legislation now in the hands of Venezuelan lawmakers will impact the operations of some oil-services companies but will leave out rig firms and large well-service firms.

Oil Minister Rafael Ramirez noted Wednesday that firms such as Williams Co. (WMB), a U.S. firm that operates a high-pressure gas compression facility in Venezuela, could be affected by the new law, but noted that oil rig firms and large service firms such as Schlumberger Ltd. (SLB) and Halliburton Co. (HAL) are not included.


[Bolivia] -- U.N. Team Documents Forced Labor Among Indians in Bolivia
LA PAZ – A mission dispatched by the U.N. Permanent Forum on Indigenous Issues reported Tuesday that it had verified the existence of Indian communities in eastern Bolivia that are being subjected to forced labor.


[Peru] -- Central Bank May Cut Interest Rate to 4% as Domestic Demand Stalls
Peru’s central bank will probably cut its benchmark lending rate for a fourth straight month today as slowing inflation allows policy makers to lower borrowing costs and bolster flagging domestic demand.


[Peru] -- Repsol to Invest $500 Million a Year in Peru, Complete Projects
Repsol YPF chairman and CEO Antonio Brufau said Tuesday that the Spanish energy giant would invest $500 million per year in Peru, completing $6 billion in oil and natural gas projects.

The Spanish oil company has a large stake in the development of the Camisea natural gas field in southeastern Peru and plans to begin exporting fuel to Mexico next year.


[Chile] -- Codelco Increases Reserves by 20 Percent
Chile’s state-owned National Copper Corporation, or Codelco, the world’s largest producer of the red metal, increased its proven and probable reserves by 20 percent in 2008, company sources told Efe on Wednesday.


[Mexico] -- Calderon Deploys Reserves as Swine Flu Depletes Mexico Financial Resources
As the sun sets on Ciudad Juarez, the Mexican border city’s citizens flee to the safety of their homes. The vendors who crowd Avenida Juarez to sell tacos and ice cream during the day pack up their carts and disappear. Hawkers who hand out leaflets for a local mall are gone too -- and the mall itself is a ghost town.

Schlumberger-led group wins 500-well Chicontepec contract - Mexico

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

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.