Swiss oil trader Trafigura becomes first private company to market Mexican crude

22 December, 2017

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Mexico’s National Hydrocarbons Commission (CNH), the country’s oil regulator, announced it has chosen Swiss company Trafigura as a crude oil trading partner, making it the first foreign company to get the right to market Mexican crude derived from the energy reform of 2014.

Until now, only PMI Comercio Internacional, S.A. de C.V., the commercial division of state-owned energy company Pemex, was eligible for trading the country’s oil and gas.

According to the reform, oil traders now must compete directly with each other to commercialize the oil and gas that the state obtains under new production-sharing contracts.

The Mexican government awarded Trafigura the three-year contract because it was the only participant in the tender in addition to Pemex’s PMI, and because it offered a lower price per barrel than PMI, at US$ 0.18, versus US$ 0.21 for PMI, the CNH said in a statement.

Over the next year, the NHC said, Mexico will sell an estimated 8.02 million barrels of crude oil and 4.07 billion cubic feet of gas. For gas, the state will remain in charge of sales, through the Federal Commission of Electricity (CFE).

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