Mexico is known as the "country floating on the sea of oil", the oil and gas industry is the pillar of Mexico's economy. With global economy recovering, future oil demand will continue to rise, and the International Energy Agency predicts that the petrochemical industry will account for more than 30% of oil demand growth in the future, becoming the main driver of growth. According to Rystad Energy, if upstream exploration activities continue at the current low level in the next 10 years, global oil will be in short supply in 2050. Mexico, as a major offshore oil country, has enormous economic potential.
On November 30, 2018, Lopez Obrado, the leader of the Mexican political party, was officially inaugurated as the 58th President of Mexico for a six-year term; his new energy policy and campaign promises are to "save oil and revive the economy", driving the recovery of Mexico's oil industry with clear signals. In response, Petroleos Mexicanos (Pemex), Mexico's largest oil and petrochemical company, has responded positively to the national policy and played an important role in the global energy supply chain by setting up an aggressive six-year development plan: a 14% increase in budget in 2019 and a 14% increase in crude oil production in 2024. by 14%, crude oil production by 52% in 2024 and refining capacity by 5 times in 2022.
At the same time, while Mexico has become the current hot spot for global offshore industry, the degree of development in Mexican waters is simply a blank compared to the Gulf of Mexico, which has complete infrastructure and mature technology; with the oil and gas market picking up, the utilization and day rate of offshore rigs are gradually recovering and the demand is strong. CMIC seized the opportunity and quickly cut into the Mexican market with its international resources and sophisticated technical and equipment strength.
In December 2018, PEMEX announced a tender for the development of one onshore block and four shallow offshore blocks (11-90 m water depth), the rapid development of these fields will significantly increase crude oil production and is expected to achieve the target production of 2.65 million bpd by 2024. As a result there is strong demand for drilling rigs and dozens of jack-up rigs were entering operation.
On May 20, 2019, Mexican oil company PEMEX announced the results of the third round of the 2019 offshore oilfield drilling tender, and CMIC, together with CP Latina, won 25% of the total tender amount of the round in second place, about US$200 million of the contract amount, which is the largest of the four tenders in 2019, containing a total of 31 wells, with the first place getting 9 wells, the second place received eight wells, third place six wells, and the remaining eight wells will be awarded to the winner with the better contract execution. On May 31, 2019, CP Latina and PEMEX officially signed the third round of the offshore integrated services tender agreement to accelerate the extraction of crude oil production in the Gulf of Mexico.
Among them, PEMEX has paid attention to and strongly recognized the "Gulf Drilling Rig 6", which is operated and managed by CMIC Asset Management Division. The Koban 25 field, where Bay Drill 6 is operating, is one of PEMEX's strategic shallow oil fields. By the end of the first quarter of 2022, these strategic new fields produced an additional 355 million barrels of crude oil for PEMEX, a significant gain for Mexico, where crude oil production has been declining over the past decade.
Gulf Driller VI is a high-specification jack-up rig built by CIMC Raffles with JU2000E F&G design and ABS class, capable of operating in water depths up to 120 meters (400 feet) and drilling to a depth of 10,668 meters (35,000 feet) in rough sea conditions. 35,000 ft) in rough sea conditions. The rig was leased by CIMC Raffles to Constructora y Perforadora Latina, S.A. de C.V. (CP Latina) in June 2019 on a bareboat charter basis to provide integrated offshore oil well services.
PEMEX management has repeatedly appreciated CP Latina's efficient and meticulous operational management in the Koban and Tetl well areas. This excellent performance also supports PEMEX's strategy to increase shallow water crude oil production and meet capacity targets, and has helped CP Latina become a strong contender for well assignments in the region. PEMEX encouraged GD VI to continue to be “the best of best”and to maintain great performance with utmost HSE. CP Latina expressed its gratitude to CIMC Raffles and CMIC for their strong support and trust, and also strengthened its confidence to maintain closer cooperation with CMIC Asset Management Division. The successful bid for the third round of the PEMEX field development project of Petrobras, Mexico, demonstrates the strength of CMIC in the global offshore industry.
On the other hand, CP Latina, the partner of the project, is a powerful integrated group of companies in Mexico, which will fully ensure the smooth execution of the contract and promote the overall cooperation scheme of both parties in platform operation and maintenance. In the future, through the deepening cooperation with CP Latina, CMIC will take this opportunity to seize the offshore oil development boom in Mexico and make continuous efforts to explore potential business opportunities in drilling projects and platform operation and maintenance in the Gulf of Mexico. Meanwhile, CMIC will fully leverage the advantageous resources and leading position of strategic partners such as Shelf Drilling, one of the world's leading shallow water drilling companies, and CP Latina to seize the platform demand in the Middle East, Gulf of Mexico and other hot regional markets, expand its own brand strategy, and consolidate and enhance its industry position and influence.