| VIEW FROM THE TOP
COOPERATION AT THE HEART OF INDUSTRY SUCCESS MERLIN COCHRAN Director General of AMEXHI
22
Q: How does AMEXHI define its role within today’s oil and
as dedicated as they are. During the election campaign,
gas industry?
the government stated it would review contracts signed
A: AMEXHI’s role is to be the voice of the industry, particularly
with private players, which it did, and said it would let
that of the upstream sector. Our goal is to create consensus
companies operate. So far, the government has kept its
among our members in order to voice a message, concern
word on not changing these contracts. Now, the private
or opportunity to the government and society. In the last
sector must uphold its part of the bargain to move as
year, a new federal government was elected but none of
quickly as possible to reach production and increase
the long-term contracts that our 43 members signed have
oil production for the benefit of the nation. Investment
changed. These contracts last between 30 and 40 years and
figures have shown that private players are doing as
the government’s commitment remains exactly the same.
they said they would, and now Eni is delivering 15Mb/d. This is in addition to our members that won contracts
AMEXHI is working along two tracts. The first is supporting
in Round 1.3 and are already producing around 30Mb/d.
the operations of our members that have already signed
This is a start.
contracts for farmouts or blocks during the bidding rounds. A contract is only a right to begin work. We ensure that
AMEXHI’s Five-Year Plan targets 280Mb/d production
any regulatory concerns our members have are addressed
by 2024. This is based on the potential we see within the
and all areas of opportunity are communicated to the
industry today, from only a handful of operators within the
appropriate authorities.
entire 107-contract spectrum. These are the companies that won contracts during Round 1.2, 1.3 and farmouts.
The other area of focus within AMEXHI is in new opportunities
The companies that started later will be included in our
for the industry. AMEXHI believes in the presence of
production goal once the results of their exploration wells
farmouts and bidding rounds as part of Mexico’s energy
are known. Therefore, this target will continue to grow as
strategy. Our diverse membership encompasses many
more operators inject new production. However, if there are
different companies with distinct investment portfolios and
no new opportunities added to the pipeline, this production
expertise, all of which add value to Mexico. A central goal
rate will eventually stall before falling in 2027.
for AMEXHI is to prove our members provide this added value so that further opportunities can be opened to them.
Q: How will investment into new fields announced in PEMEX's Business Plan impact the investments of the
Q: How can the federal administration ensure the private
private sector?
sector remains allied to its goal of energy sovereignty?
A: Increase in investment from the public sector will be
A: Private companies in Mexico are partners of the
accompanied by a year-on-year investment increase from
government and this partnership is accompanied by a
the private sector. Between 2015 and 2018, US$8.21 billion
dual obligation to deliver production. But the companies
was invested by private industry into Mexico. We estimate
within AMEXHI, all of which want to continue to invest in
that US$20.57 billion will be invested by private companies
the country, need to know that their partner is committed
up to 2024. This clearly demonstrates the commitment of
to the target. They need to know that the government is
private companies to Mexico. They are here for the longterm. Companies are willing to take on the financial risk, which can be large considering oil and gas is not an industry
Companies
that yields success all the time. Even when companies have
(AMEXHI) is a non-profit association. Its goal is to develop
not been successful with their exploratory wells, they have
Mexico’s hydrocarbons industry to the highest international
improved the knowledge network for Mexico’s oil and
standards. The association includes 43 companies and PEMEX
gas industry.
The
Mexican
Association
of
Hydrocarbon
