7/28/2019 137 MEXICAN.pdf

http://slidepdf.com/reader/full/137-mexicanpdf 1/1

STEP ONE First Reading andListening * Understanding the Major Message

fQ Instructions: Read the article and listen to the tape at the same

time. Do not bother with the words you do not know. Try to

&understand only the major message. Then go to STEP TWO andfind in our list what you think that message is.

Mexican Energy Sector Seeks Private InvestorsFunds are badly needed for oil exploration

Former DuPont Executive Leads Change at State-Owned Pemex

M E X I C O C I T Y jjj A s D u P o n t Co.'s t o p e x e c u t i v e i n

M e x i c o , R a u l M u n o z c h a m p i o n e d a grea ter ro l e for the

p r i v a t e sector in Me x i c o ' s h y d ro c a rb o n i n d u s t ry , th e l o n ep r o v i n c e of tiejMte since 1938.

In 1995, when Du P o n t ' s Co n o c o I n c . u n i t p u sh e d for a

con t rac t to de^jjftthe giant Burgos natural -gas f ield a l o n g

th e T e x a s border , M r. M u n o z lobbied a c t i v e l y for the p l a n .

L i k e o t h e r s , C o n o c o ' s p r o p o s a l f a i l e d t o c l e a r t h e

c o n s i d e r a b l e p o l i t i c a l h u r d l e s to o u t s i d e p a r t i c i p a t i o n i n

the e n e r g y ,jj!|jg!!!js|r

No|*f|i4iliie4:oM

afc p e t r o l e u m g i a n t P u t r u l e o s

M e x i c a n n s , o r J|n|gx|Mr. M u n o z is a g a i n p u s h i n g , a l -

bei t getliyjfj:JMbfe|;privale en terpr i se . B i g o i l c o m p a -

n i e s stuck a foo t in the door o f M e x i c o ' s c a s h - s t a rv e d

e n e rg y s e c t o r l a s t w e e k w h e n t h e R o y a l D u t c h / S h e l l

G r o u p a n d E l P a s o Corp . s a id they wou ld inves t $300

that §itpj2piii'i8tra

8as

back into gas.

por t , d is l r i lm • • _ • and store n a t u r a l ga s h ere since 1995, th e

d e a l whlp§ . . . . (pjjtires a l o n g - t e rm c o m m i t m e n t f ro m

Pemex to buy the gas jj i s be ing t aken as an i m p o r t a n t

s i g n a l o f M e x i c o ' s concess ion tha t i t c a n ' t meet i ts en-

ergy n e e d s a l o n e .

"It's a bo ld step," says She l l G a s & P o w e r d i r e c t o r Jo n

C ' h a d w i e k . "Meispf rjeqgnizes it n eed s to dreeipfjf 4tf ,supp ly . "

I n d e e d , M r. M u n o / wa s fo rce fu l o n tha t po in t l as t week ,

s a y i n g M e x i c o r i s k s a s h a r p d e c l i n e in p e t ro l e u m e x p o r ts

if i t d o e s n ' t c o m m i t sonic $9 b i l l i o n a year to new exp lo -

r a t ion ja leve|mfaf lyfkjpf If,t ?gplM|te2|yihej:fqr^|r. !

adjainist ra t ion o f Ernes to Zed i l lo .

I n a sense, the She l l /H i Paso term ina l represents more o f

th e same in t ha t P e m e x is d e e p e n i n g i t s c o m m i t m e n t t o

impor t fue l s r a t h e r t h a n i n v e s t i n g to p ro d u c e t h e m a t h o m e .

But the dea l is i m p o r t a n t because it s h o u l d h e l p a t t r ac t for-

e ign i nves tm en t in a n o th e r a rea : e lec t r i c i ty g e n e r a t i o n . T h e

i n a b i l i t y of p r i v a t e u t i l i t i es to see w h e r e t h e i r fu e l w i l l c o mefrom h a s h a m p e re d M e x i c a n efforts to at t ract private power

p r o d u c e r s . L a s t w e e k , lo r i n s t a n c e , th e state power com-p a n y received just one bid tor construct ion of a 450-mega-

wat t power p l a n t .

At th e s a m e t i m e , a w a v e of gas a r r iv ing on th e G u l f

C o a s t a b o a rd S h e l l t a n k e r s s h o u l d h e l p n o r t h e rn M e x i c o

r e d u c e it s r e l i a n c e on the v o l a t i l e spot: m a r k e t for gas in

S o u t h Texas, where p r ic e run-ups last year fo rced Mexico ' s

s tate electr ic i ty company to abandon gas in f a v o r o f f u e l

oi l

W h i l e M e x i c o d o e s n ' t f ace a C a l i f o r n i a - l i k e e n e r g y

c r u n c h soon , o f f i c i a l s se e b l a c k o u t s b y 2004 if it d o e sn ' t

a g g r e s s i v e l y e x p a n d i t s p o w e r g r i d . S h e l l , t h r o u g h i t s

I n t e r G e n p o w e r u n i t , has i ts sights set on tha t bus iness ,

too. Both i t and E l Paso a l ready genera te e lec t r i c i ty in

M e x i c o .

B e y o n d c r a n k i n g up energy imports, M r. Munoz said

th e c o mp a n y wil l have to look a t extensive service e o n -

t rac t s fo r d r i l l i n g g a s con t rac t s a k i n t o the one he tried

to push on Conoco's b e h a l f i n 1 9 9 5. E a r l i e r th is y ea r ,C a n a d a ' s P re c i s i o n D r i l l i n g C o rp . w o n a $270 m i l l i o n

con t rac t to dr i l l 240 gas w e l l s fo r P c r n c x in the Burgos

B a s i n .

for now, such contracts involve fla t fees, but private com-

panies a re agi tat ing fo r dea ls tha t wou ld ti e p a y m e n t top e r f o r m a n c e a n idea some in P e m e x tavor.

Such contracts could be a l l o w e d by o v e r t u r n i n g a 1959

l a w p ro m p t e d b y o i l - i n d u s t r y l a b o r u n i o n s ; a c h a n g e w o u l d

be possib le w i t h o u t changing Mexico 's const i tu t ion.

I n theory , s ays M r. M unoz . the m ore pr iva t e inves tmen t

P e m e x canattraqt i | sp |ai Q d|~ |d ^

a n d d i s t r i b u t i o n , the more the w o r ld ' s No . 7 o i l c o m p a n y

w i l l h a v e to invest in i ts core ac t iv i ty : c ru d e o i l pro d u c t f a^ .

T h a t m e a n s m o r e o i l ava i l a b le fo r expor t to M e x i c o ' s to p

cus tomer , the U.S .