Impunity follows offshore attacks in Mexico

  • Spanish Market: Crude oil, Natural gas
  • 13/09/22

A recent spike in thefts from shallow-water oil platforms and support vessels in the heart of Mexico's offshore oil and gas industry has worsened delays and economic losses for both state-owned Pemex and non-state operators.

But while the recent surge in incidents is set against a longer-term downward trend in attacks, criminals continue to operate with complete impunity.

"The navy implemented a security operation in 2019 to combat criminality in the Campeche sound but it has been of limited efficiency as no one has been arrested for criminal acts," president of the senate energy commission Rocio Abreu told Argus.

The commission she represents wants to make sure that the investigations are completed towards stopping the thefts and recovering equipment, Abreu said.

The most recent incidents include thefts from offshore platforms operated by Pemex and Russia's Lukoil in June and an attack on oil services company Protexa's Crest Tarasco vessel off the coast of Dos Bocas, Tabasco, in May.

The number of attacks on offshore platforms and services vessels has doubled this year to 22, compared with 11 last year, with four attacks carried out on a single night in June, Cameron Watson, analyst at maritime security consultants Dryad Global told Argus.

But following a peak of 273 incidents in 2017, attacks have declined since 2020 as Pemex and the navy have invested in additional security measures, such as naval patrols in the Bay of Campeche, Watson said.

The attacks this year have followed a well-established modus operandi with groups of from five to 15 armed individuals boarding offshore platforms or oil service vessels from small fiberglass-hulled craft, similar in appearance to local fishing boats.

Attacks have taken place at night, targeting personal items belonging to crew, equipment such as mooring ropes, scuba gear, metal pipes and easily transportable cargo.

But while criminals previously targeted remote and minimally staffed platforms, recent attacks have included Pemex's largest complexes across the Cantarell field as well as the newly launched Ichalkil field operated by Lukoil.

The methodology of the attacks indicates that the perpetrators are low-level criminals likely operating at the behest of criminal gangs ashore, Watson said.

While the attacks have yet to result in serious injuries or deaths, gunshots were fired during May's attack on Protexa's Crest Tarasco vessel, an employee onboard during the assault told Argus.

The navy responded within 30 minutes of the Crest Tarasco's alarm call but the employee expressed concern about the increasing number of attacks in the region and the lack of communication from the navy about how it would respond to active robberies if employees are held hostage.

"If Pemex and the navy do not take action, it not only puts workers lives at risk but also crude production and that could cause an impact on the Mexican economy," Abreu said, calling for increased investigations into the attacks.

There is a lot at stake if the security situation worsens — $12.3bn in approved investments this year in shallow and deepwater blocks — and Russian operator Lukoil has already had to delay exploration work by four months on its shallow water block 12 "due to insecure conditions," according to oil regulator CNH.

The Mexican navy is required to protect a vast area of offshore acreage — 81,998 km² (31,660 mile²) across 60 exploration and production contracts and 97 Pemex blocks.

But most attacks take place relatively close offshore from Ciudad del Carmen in Campeche and Dos Bocas.

"The government does not have the necessary tools or resources — patrols, weapons or technology — to fight criminals at sea," Adriana Avila, academic at the World Maritime University, told Argus.


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25/04/24

US reimposes Venezuela oil sanctions

US reimposes Venezuela oil sanctions

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LNG Energy eyes sanctions-hit Venezuela oil blocks


25/04/24
25/04/24

LNG Energy eyes sanctions-hit Venezuela oil blocks

Caracas, 25 April (Argus) — A Canadian firm plans to revive two onshore oil blocks in Venezuela, but the conditional deals signed with struggling state-owned PdV come just as the US is reinstating broad sanctions on the South American country. LNG Energy Group's Venezuela unit agreed two deals with PdV to boost output in five fields in the Nipa-Nardo-Niebla and Budare-Elotes blocks, which produce about 3,000 b/d of light- to medium-grade crude, the company said on Wednesday. The Canadian company, which operates in neighboring Colombia, would receive 50-56pc of production of the blocks. Venezuela's oil ministry declined to comment. But finalizing the contracts depends on providing required investment to develop the fields within 120 days of the contract signing on 17 April, LNG Energy said. And the signing came on the same day as the US reimposed oil sanctions on Venezuela and gave most companies until 31 May to wind down business. LNG Energy Group said it intends to comply with existing and upcoming US sanctions, noting that the conditional contracts were executed within the terms of the temporary lifting of sanctions — general license 44 — but it will abide by the new license 44A. The reimposition of US sanctions on Venezuela prohibits new investment in the country's energy sector, at the threat of US criminal and economic penalties. "The company will assess in the coming days the applicability of license 44A to its intended operations in Venezuela and determine the most appropriate course of action," LNG Energy said. "The company intends to operate in full compliance with the applicable sanctions regimes." The two blocks are in the adjacent Anzoategui and Monagas states, part of the Orinoco extra heavy oil belt. Most of Venezuela's output is medium- to heavy-grade crude. Both PdV and Chevron have drilling rigs working in those two states, in separate workover and drilling campaigns. Venezuela is now producing above 800,000 b/d, after the US allowed Chevron to increase production and investment under separate waivers. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US economic growth slows to 1.6pc in 1Q


25/04/24
25/04/24

US economic growth slows to 1.6pc in 1Q

Houston, 25 April (Argus) — The US economy in the first quarter grew at a 1.6pc annual pace, slower than expected, while a key measure of inflation accelerated. Growth in gross domestic product (GDP) slowed from a 3.4pc annual rate in the fourth quarter, the Bureau of Economic Analysis (BEA) reported on Thursday. The first-quarter growth number, the first of three estimates for the period, compares with analyst forecasts of about a 2.5pc gain. Personal consumption slowed to a 2.5pc annual rate in the first quarter from a 3.3pc pace in the fourth quarter, partly reflecting lower spending on motor vehicles and gasoline and other energy goods. Gross private domestic investment rose by 3.2pc, with residential spending up 13.9pc after a 2.8pc expansion in the fourth quarter. Government spending growth slowed to 1.2pc from 4.6pc. Private inventories fell and imports rose, weighing on growth. The core personal consumption expenditures (PCE) price index, which the Federal Reserve closely follows, rose by 3.7pc following 2pc annual growth in the fourth quarter, although consultancy Pantheon Macroeconomics said revisions to the data should pull the index lower in coming months. The Federal Reserve is widely expected to begin cutting its target lending rate in September following sharp increases in 2022 and early 2023 to fight inflation that surged to a high of 9.1pc in June 2022. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India’s Gail to shut Dabhol LNG terminal for monsoon


25/04/24
25/04/24

India’s Gail to shut Dabhol LNG terminal for monsoon

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Barge delays at Algiers lock near New Orleans


24/04/24
24/04/24

Barge delays at Algiers lock near New Orleans

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