Author: Mexico English Library

The Three Largest Mexican Oil Refineries

Pemex produces a significant share of the world’s oil. But that oil doesn’t come out of the ground ready to use — it has to first be refined.

Every day, millions of barrels of oil are refined across the the different refineries in Mexico. The increase in Pemex projects over the last few years has led to an increased demand from Mexican refineries and Pemex has set out to improve them all.

The following refiners are the three largest oil refineries in Mexico and the current state of developments for each.

Salina Cruz Refinery

The Salina Cruz Refinery is owned by Pemex and refines about 290,000 barrels of oil every day. It’s located in Salina, Oaxaca just off of the Pacific coast.

In 2014, Pemex announced its plans to make changes to the Salina Cruz refinery so that it operates on cleaner and more affordable fuels. In 2015, Pemex invested around $668 million into the Salina Cruz refinery for the purposes of refitting the refinery and expanding their natural gas pipeline. The goal is to expand the natural gas pipeline by 75 percent in the next few years.

Cadereyta Refinery

The Cadereyta Refinery, also known as the Hector R. Lara Sosa Refinery, is also owned by Pemex. It’s located in Cadereyta, Nuevo Leon and has the capacity to refine up to 275,000 barrels of oil per day.

The Cadereyta Refinery Reconfiguration Project (CRRP), from 2011, improved the structure of the Mexican petroleum industry just in time for the increase in oil production and gasoline sales that started in 2012 and has continued since.

In 2014, Pemex announced plans for mid-2015 to install a new integrated monitoring and control system for the diesel plant’s hydrodesulfurization (HDS) and sulfur recovery units.

Salamanca Refinery

The Pemex-owned Salamanca Refinery is located in Salamanca, Guanajuato and has the capacity to refine up to 222,000 barrels of oil each day.

In February of 2015, Pemex announced a major revamp of five different refineries, including the Salamanca Refinery that they have planned and is estimated to cost around $2.8 billion dollars.

Under the contract that was awarded by Samsung Engineering Co. Ltd., SENER will provide detailed engineering for improving existing units at the refinery so that they meet modern standards, as well as the integration of those new units with associated off-site installations.

Three Must-Have’s to Bid on a PEMEX Oil Contract

So your oil and gas company has decided to bid on a Pemex oil contract?

That’s great, but there are a few things you will need before you can proceed. Contracts aren’t open to just any company and bidding does get quite competitive.

Fortunately, Pemex English Library can help you with all of this.

Identify Your Target Region

Before bidding, you should be familiar with the different regions and decide which area is best for your company.

  • Mature Fields in the Southern Region: This area had not been developed since the 1970s, until bidding on new contracts for this region opened in 2011. Several international energy companies jumped on the opportunity to collaborate in this region and there has been tremendous success. In mid 2015, Pemex announced that their biggest oil discovery in years had been found in this region — increasing production by over 200,000 barrels per day.
  • Mature Fields in the Northern Region: The northern region also has mature fields that produce around 129,000 barrels of oil per day. Bidding for contracts in this area started in early 2012.
  • Chicontepec Blocks: This region is technically challenged and characterized by shallow sands with low permeability. The first round in 2012 saw very few bids and most of the companies that participated only submitted very low bids.
  • Deepwater Areas of the Gulf of Mexico: Analysts have estimated that the Gulf of Mexico contains over 28 million barrels in oil reserves on the Mexico side. This is a region that Pemex will want to collaborate the most in, due to the high costs associated with deep water exploration.

Understand the Terms

The terms for each contract are different and they vary by region, as well. Contracts are incentive-based and compensation is based on a fixed fee-per-barrel basis.

Contracts are split into two periods: an evaluation period and then a development period. The evaluation period generally lasts two years and then the development period is determined by the economic viability of the specific blocks that the contract is based out of.

Have a Clear Budget

These contracts typically have terms for two to three decades minimum, which means a very large and long-term financial commitment. Before bidding on a Pemex contract, your company needs to have a clear budget outlined for exploration in Mexico.

How Does Pemex English Library Work?

Pemex English Library was created to make your collaboration with Pemex as easy as possible.

You need translated technical documents and we’ve got them — all of them. Our database includes over 10,000 technical documents that you can access securely online from anywhere in the world with an internet connection.

Our service exists to keep you informed, help answer any questions along the way, and to connect you with the right people to help your company make the most of working with Pemex.

How Pemex English Library Works

Your company is interested in exploration and development in Mexico’s oil and gas industry. Before you can get started your company will need to familiarize itself with the regulations of our industry and bid on a contract with Pemex.

To make the process as easy as possible, Pemex English Library walks you through the entire process step-by-step.

The first step is to get in touch with us to create your account with Pemex English Library.

Once your account is created you’ll have access to all of our technical documents (well over 10,000 and growing), and you’ll start receiving free updates on all existing documents and changes to NRF, NMX and NOM.

In addition, you’ll have access to project specific AutoCad drawings, HSE training material, HSE videos, operations, HSE, maintenance, training, installation, manuals, JSA, etc.

By using our Pemex Project Cross Reference Tool (PPCR) you’ll receive instructions that walk you through the entire process of bidding on contracts and you’ll stay up-to-date on deadlines and changes in regulations.

Our PPCR tool will also customize presentations for your specific projects that you can share with investors, shareholders, or other decision-makers in your organization. Access to this online tool is safe and secure, so you never have to worry about your information being compromised.

You’ll also be able to arrange meetings with key Pemex officials in Mexico, if necessary.

Still have questions regarding how everything works? We are happy to answer any questions and address any concerns. Feel free to use the contact form on our website or send us an email at info@pemexenglishlibrary.com.

Why Choose Pemex English Library Over Other Document Translations

With so many document translation services to choose from, why should you choose Pemex English Library over the others?

That’s a fair questions and something you should definitely consider when deciding on any translation service. After all, there is a huge difference in quality from one service to another, depending on who you are comparing.

Based on the value that we strive to provide and the feedback that we’ve received from our loyal clients, we’ve put together a short list of reasons that you should choose Pemex English Library over other document translations.

No One Else Knows Pemex Like We Do

If you need documents from Pemex translated, who better to translate those documents than the people who work directly with Pemex? Other companies might be able to produce a quality translation, but they won’t have the level of access to Pemex that we do and they can’t stay up-to-date with changes as quickly as we can.

Translated documents are only part of the service that we provide. Our comprehensive service is designed to make the entire process of working with Pemex as easy as possible for you, without delays or missed deadlines.

Free Standard Updates

We keep you informed of everything that’s happening in real-time. In addition to having access to over 10,000 translated technical documents, you also receive free updates on all existing documents and changes to NRF, NMX and NOM.

As standards and regulations change, you won’t ever be left in the dark. We strive to keep your company well-informed at all times to eliminate any confusion or mistakes caused by misinformation.

Our Pemex Project Cross Reference™ Tool (PPCR)

This is something that we are especially proud of and that no other translation service in the world can claim to offer — our Pemex Project Cross Reference ™ Tool.

By using the PPCR tool you will receive clear instructions that walk you through the entire bidding process and keep you informed on anything that you need to handle on your end. You’ll also be ensured that everything is completed in a timely manner and you won’t have to worry about missing any deadlines.

Why the Quality of Your Oil and Gas Industry Document Translation is So Important

When it comes to document translation, it’s easy to underestimate the value of a high quality translation service. Most people are under the impression that quality doesn’t vary much between services, and this couldn’t be further from the truth. Especially in an industry such as oil and gas, the quality of document translation is crucial and we’ll tell you why.

Saves You Time

A good document translation service does the hard work for you. Not only are you able to understand the words, but the meaning has been completely translated as well. Poorly translated documents end up wasting time, because you are stuck searching for answers to help you understand the translated document.

With a service like ours, you have access to an organized library of technical documents that allows you to find what you’re looking for – quickly and easily.

Valuable Decisions Require Valuable Resources

In the oil and gas industry, multi-million dollar decisions are common. Your company relies on quality information to make the best decisions in the market. Investing in top quality document translation is a necessity to having access to the best information possible.

Companies looking to work with Pemex will need to meet a number of requirements and understand the laws/regulations that govern the oil and gas industry in Mexico. International business requires up-to-date information and does not allow much room for error. This is why document translation is not an area to cut corners.

Communication is Essential to Business

Proposals, bid documents, contracts – all require first class communication. If you aren’t using a great translation service, the amount of potential problems that could arise is frightening. Communication is a key element to business and foreign language often hinders communication. However, that doesn’t have to be the case. With high quality translation, business communication never has to suffer.

Are you sure that your message is being conveyed in the manner that you would like it to? With a company like Pemex English Library, this is something you never have to worry about. We take pride in providing the highest quality translation of documents and uphold the highest standards in the industry for customer support. For a free consultation, contact us today and we’ll see how we can help your company reach its goals.

3 Signs of a Good Technical Document Translation

Acquiring and reading technical documents from a foreign country offers a number of obstacles – a significant obstacle being the translation of those documents. All document translation services are not created equal and the difference in final product between companies is significant.

That’s why we’ve put together a list of three signs of a good technical document translation. If the company you’re using can meet these standards, you’re in good hands.

1. The Meaning Isn’t “Lost in Translation”
A translated document should never look like it was copied and pasted into an online translation form – because that’s not how true translation is done. Rather than replacing isolated words or phrases, the message behind the words needs to be translated.
Low quality translation services are notorious for providing documents that don’t fully convey the original meaning. Working with technical documents can be confusing enough in your native language, the last thing you need is a translation that confuses the meaning even more. Pemex technical documents provided by Pemex English Library are translated by Axxia, a highly reputable translation firm that specializes in translating technical documents to and from multiple languages.

2. The Style Resembles Your Native Language
Different languages accompany different writing styles. A good translation service produces a document that reads as if it was originally written in that language.
Use of terminology, style, and grammar should all match that of the language that the document is translated to. Ensuring that the meaning remains intact is the bare minimum. The documents should also be easy to read and understand. The best technical document translation firms will provide this level of quality.

3. Consistency Between Documents
Pemex English Library provides well over 10,000 technical documents to clients. Some of those documents are so old that they were originally handwritten. Over time the laws, policies, and technology have evolved. It’s absolutely crucial that the quality of translation is consistent throughout all documents.

A major success of our partnership with Axxia is that all of the documents we provide have been translated with the same level of quality. Some companies will cut corners on documents that they feel are less important. It’s difficult to predict which documents you might need over the course of working with Pemex, so you want to be ensured that even the rarest technical documents are as easy to understand as the most common ones.

At Pemex English Library we refuse to cut corners and every document we provide is translated with the same attention to detail. To gain access to our private library, contact us today. We look forward to hearing from you!

Pemex Contracts Are At All Time Low

Late 2014 and early 2015 have seen the lowest oil prices in years, which has many oil companies concerned.  Although U.S. production numbers remain high, exploration and production companies are looking to cut back on spending in 2015.  This will be a pivotal year for the oil industry and everyone is in anticipation of the next move from the key industry leaders.

Impact on Production

According to Moody’s analysts, the capital reductions that oil companies have announced will have a limited impact on production during the year of 2015 – primarily because companies are reacting to high levels of spending in 2014.  In addition, the required capital to maintain production is significantly lower right now.

However, many drilling companies have seen a decrease in new contracts over the last several months.  Although they aren’t expected to come to a complete halt, new drilling contracts are forecasted to significantly decrease throughout the first half of the year.

At this point analysts say that the full impact will vary widely from company to company, depending on the liquidity of their assets and their operating costs.

Mexico – Pemex Production Contracts at Record Lows

Pemex’s production in 2014 averaged 2.429 million barrels per day (bpd), or 3.7 percent lower than in 2013. On 30 January 2015 Pemex reported that one-month production numbers in December 2014 were the lowest on record at 2.353 million bpd. The declines are attributable to shrinking oil deposits in Cantarell and Ku-Maloob-Zaap. Moreover, for the first 25 days of 2015 production was 8 percent lower than in January 2014, at 2.235 million bpd. This weak performance puts Pemex in a complicated situation as low global oil prices could exacerbate deteriorating production. Pemex proposed US$4 billion in budget cuts, which could put Mexico’s current production level at risk. The board of directors will decide in the next few days where those cuts will be focused.

Expectations for Mexico’s Economy in 2015

Between falling oil prices and the challenges of the current international economic environment, expectations for Mexico’s economy have lowered for the time being.

Over the course of 2014, Mexico’s peso fell by 13.1 percent.  Typically the effects of a declining currency would be offset by the increased value of dollarized exports, which is usually the case for Mexico – where oil exports account for 32 percent of government revenue.  However, with oil at historically low prices, export revenues are declining while imports continue to become more expensive.

Despite lowered expectations for Mexico’s economy in 2015, investors remain optimistic.  The Mexican government plans to implement a number of policies, affecting the telecom and energy industries, that will lead to increased investment.

The Benefits of Using the Pemex English Library

Pemex English Library has been operating for over 25 years.  As the leading English Library Provider for Pemex projects, Pemex English Library has gathered and translated well over 10,000 documents into English.

Pemex English Library provides information regarding upcoming projects, bids, meetings, awards, as well as updates on Mexican laws, and NRF.  We also provide guidance for all Pemex compliance requirements to make the process as smooth as possible for you.

Not all databank services are the same, especially when the translation of all documents is required.  Here are five benefits to using Pemex English Library over any other service.

1) 10,000+ Technical Documents and Free Updates

Pemex English Library is the primary resource for consultation and distribution of existing internal regulations of Pemex.  The main objective of this service is to provide technical documents with accurate meaning to accelerated delivery.

The Pemex English Library contains over 10,000 technical documents and that number is growing.  In addition, clients receive free updates on all existing documents and changes to NRF, NMX and NOM.

2) Backed by Axxia English Translation

Pemex English Library works with the English translation firm, Axxia, to ensure the best quality translation.  Axxia translates technical documents into multiple languages for the oil and gas industry.

What’s great about having the support of Axxia is that they translate large documents of any type in 24-48 hours.  This allows Pemex English Library to keep our clients informed with updates as quickly as possible.

3) Compliance Information and Help

Pemex English Library offers project compliance information to help your company with all requirements while working with Pemex.  Your company will be provided with a worksheet completely outlined so you have a clear vision of what documentation you need – all in English, of course.

4) Multi-Client Online Databank

Pemex English Library is one of the only companies to have a multi-client online library.  No matter what project you’re working on, you’ll have access to project specific AutoCad drawings, HSE training material, HSE videos, operations, HSE, maintenance, training, installation, manuals, JSA, etc.

5) Pemex Project Cross Reference (PPCR)

By using the Pemex Project Cross Reference method your company can easily meet all requirements as quickly as possible.  Using the PPCR and having access to all of the technical information available in English makes your company more competitive when bidding with Pemex.

Contract Let for Salamanca Refinery

In the middle of budget cuts, Pemex has let a contract for the Salamanca refinery, following the announcement of a 2.8 billion dollar investment that will ultimately increase production of ultralow-sulfer diesel in multiple refineries throughout Mexico. Oil and Gas Journal released an article regarding the Pemex investments.

Under the contract, which was awarded by Samsung Engineering Co. Ltd., SENER will provide detailed engineering for modernizing existing units at the refinery, as well as for the integration of those units with associated off-site installations, SENER said.

The contract, for which a value was not disclosed, follows Pemex’s previous award of an $80 million contract to Samsung Engineering for Phase 1 of the ULSD project at the Salamanca plant, which involves design of a 38,000-b/d hydrodesulfurization (HDS) unit as well as the revamping of the refinery’s existing 53,000-b/d HDS unit (OGJ Online, Sept. 17, 2014).

While SENER did not confirm a timeline for its leg of the work at Salamanca, Samsung Engineering previously said initial engineering for Phase 1 of the refinery’s ULSD project is due to be completed in September 2015.

‘Budget adjustments’

A timeframe for Pemex’s program to improve the quality of fuels produced in Mexico, however, may face an overall delay.

On Feb. 13, Pemex’s board of directors approved a plan to slash its 2015 budget by 62 billion pesos ($4 billion) to meet broader government spending cuts amid sharply lower crude oil prices, according to a Feb. 16 press release from Pemex.

As a result, the company said it has deferred spending for a series of downstream activities, which include refinery modernization projects, as well as those geared at improving gasoline and ULSD qualities.

With many of the original contracts for these projects signed under more favorable market conditions, Pemex also plans to renegotiate these contracts, the company said.

The company did not identify which or how many downstream projects would be immediately affected by the budgetary cuts.

In addition to contracts for the Salamanca refinery, Pemex also let fuel quality-related contracts to the following companies:

• Foster Wheeler USA Corp. ($584 million) for the Antonio Dovali Jaime refinery in Salina Cruz, Oaxaca.

• Tecnicas Reunidas ($568 million) for the Lazaro Cardenas refinery near Minatitlan in Veracruz state.

• ICA Flour Daniel ($737 million) for the Francisco I. Madero refinery in Madero, Tamaulipas.

• ACS Group ($560 million) for the Miguel Hidalgo refinery in Tula, Hidalgo (OGJ Online, Oct. 14, 2014).

Full Article

Pemex Will Invest 3.4 Billion in HDS Projects

Pemex recently announced their plans for a 3.4 billion investment in hydrodesulfurization projects at three refineries in Mexico.  The investment will work to expand production of ultra-low sulfur diesel according to Hartenergy.

According to the state-owned company, new HDS plants will be built at the Madero refinery, the Minatitlan refinery and the Salamanca refinery.

Upgrading projects at four HDS facilities also will be carried out at refineries in Salina Cruz y Tula, while renovation projects will be carried-out at eight HDS units in refineries at Salamanca, Salina Cruz y Tula, according to Pemex.

As noted in a separate report from the EFE news agency, the ULSD projects will take about 45 months to complete. Pemex years ago had aimed to convert much of its diesel production to ULSD standards (up to 15 parts per million sulfur). But financing problems resulted in limited production, while ULSD marketing was mainly to a few cities and highway corridors used by trucks hauling freight between Mexico and North America. North American mostly converted to ULSD standards in 2006.

Article first appeared in Hartenergy Diesel Fuel news letter on March 10, 2014.