Chevron has become the first major international oil producer to do business with Mexico’s state oil firm Pemex since the country passed landmark legislation to reopen doors to foreign producers.
The San Ramon, California-based world’s third-largest energy firm by market value, is in talks with Pemex for exploration opportunities in deep waters, shallow waters or shales, Ali Moshiri, Chevron’s president of Latin America and Africa, said.
Chevron is waiting for the passage of Mexico’s secondary energy legislation before deciding the sites of the first partnerships in Mexico.
The legislation, which will determine Pemex’s participation in new projects and the tax structure for private companies joining the newly opened energy market, could be approved as soon as June.
Mexico is one of the largest oil producers in the world and has huge untapped reserves. The US Energy Information Administration estimates Mexican proved reserves to be 10.3 billion barrels as of 2013.
Mexico ratified drastic reforms to its energy sector in December that ended the 75-year monopoly Pemex has had on the country’s energy resources. Two weeks ago, Mexican government unveiled energy reform legislation proposals designed to regulate the opening up of its energy sector.
Foreign companies will not yet be able to operate filling stations in Mexico, where the state oil company Pemex controls all gas stations, but will gradually be allowed to do so.
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