Chevron Seeks PEMEX Partnerships

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May 12, 2014

By Adam Williams

May 12 (Bloomberg) — Chevron Corp., the world’s third- largest energy company by market value, will seek additional partnerships with state-run Petroleos Mexicanos as Mexico prepares to welcome the oil industry’s elite.

Chevron, which operates several rigs on the U.S. side of the Gulf of Mexico, is in talks with Mexico City-based Pemex for exploration opportunities in deepwater, shallow water or shale, Ali Moshiri, Chevron’s president of Latin America and Africa, said today during a conference in Mexico City. Chevron is collaborating with Pemex and plans to continue to pair with the world’s ninth-largest crude producer on future development opportunities, he said.

“We are not here to replace Pemex,” said Moshiri, who oversees exploration and production projects from Argentina to Angola. “We are not here to change their strategy. We are here to complement what they are doing.”

Chevron, based in San Ramon, California, is waiting for the passage of Mexico’s secondary energy legislation before deciding where the first partnerships in Mexico will occur. The legislation, which will determine Pemex’s participation in new projects as well as the tax structure for private companies joining the newly opened energy market, could be approved as soon as June, according to Mexico’s two largest political parties.

“We look for the opportunity that brings the most value to the Mexican government, the Mexican people, and our shareholders,” Moshiri said. “We are a huge company. We can invest money in conventional, deep-water, or shallow-water. What drives our decision is really to see what is the best for everybody.”

Exxon Mobil Corp. and Royal Dutch Shell Plc are the world’s first- and second-biggest energy companies by market value.

–With assistance from Joe Carroll in Chicago.
Copyright 2014 Bloomberg.

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