Here is update on Pemex hostile attempt increase stake in Reposl & align partner Sacyr Vallehermoso.
Pemex has grown frustrated with its 30 year attempt to get Repsol use its deep-water expertise to develop its deposit.
The real problem however lies with Pemex & Mexico’s protectionist control over its oil field developments – where no ownership in these fields are allowed as reward for any majors that do have deep-water technology.
This Pemex stance and its approach is really the “ridiculous” element in this situation. The deep-water reserves are huge and Mexico which depends & takes most of Pemex’s earnings to fund the government programs could have been earning the revenue from the large oil flows for decades if it only agreed to partial share in the field in exchange for the deep-water expertiese from any of major oil companies which have that technology. Recently the Mexican government took a lot of heat for its position once the true size (denied by Pemex) was revealed – especially with declining existing crude fields.
Trying to force an investment partner to use its technology is just latest bad decision in failed Government experiment in oil industry ownership. Their will likely be no winners in this approach.
Regards