Critical factors emerge for the development of Latin America’s deepwater potential

Dec. 16, 2013 - PRLog -- Key decision makers from across Latin America and international offshore experts gathered last week at the CWC Group’s annual Latin Oil & Gas: Deepwater Summit in Mexico City.

The opening presentations highlighted the enormous potential for Mexico’s deepwater development alongside the opportunities and challenges for PEMEX, and stressed the importance of adjusting fiscal terms accordingly to attract international investment. Keynote addresses were delivered by Dr Hector Moreira Rodriguez, Independent Member of the Board at PEMEX, Xavier Antonio de la Garza, Legal Manager- International Legal Affairs at PEMEX, David Small, Independent Senator in Trinidad & Tobago and J Jay Park, Managing Partner, Petroleum Regimes’ Advisory, all of whom set the scene for the event through outlining requirements for effective financing, technological innovation and a skilled workforce.

On the same day that Mexico’s energy reform edged one step closer to being passed before the end of 2013, Dr Hector Moreira Rodriguez, Independent Member of the Board at PEMEX, said: “I hope by the end of the year we have an agreement. We believe that energy reform will involve changes to around 14 – 18 laws”.

Xavier Antonio de la Garza of PEMEX, highlighted that 49% of Mexico’s conventional resources – which are estimated at 54.7 billion barrels of oil equivalent – are in deepwater areas. He added Mexico’s deepwater prospects have excellent gas potential, and their exploitation could turn the country into a fuel exporter which set the room for dynamic and open discussion on Mexico’s potential.

In the current market conditions, the importance of creating favourable conditions for international partnerships is crucial for regional government to attract foreign investment. Melissa Rambridge, VP – Latin America, The CWC Group, commented “when looking to formulate a fiscal regime, it is critical to remember that an alignment of interests of both the investor and the state must be created; the Latin Deepwater Summit presented the opportunity for an open dialogue between the resource holders and international investors.”

On the second day of the Summit, attendees heard from experts from across the region including Francisco Ferreira da Costa from Petrobras, Josefina Marmisolle from ANCAP and Dario G Lamanna of CNP in Venezuela. All these experts provided updates on the latest developments within their offshore sectors and once again highlighted the importance of technology and favourable fiscal regimes in attracting international expertise.

The Summit was rounded up by a panel discussion that included Jonathan Evans of BP and Benigna Cortes Leiss from Chevron Mexico. Led by Duncan Wood, Director of the Mexico Institute at the Woodrow Wilson Center in Washington DC, the panel re-visited the topics that had arisen over the course of the two days and once again highlighted the need for technology, partnerships and a skilled workforce in ensuring best practice in deepwater development.

For more information about the Latin Oil & Gas Deepwater Summit 2013, please visit www.cwclatamoilandgas.com