Mexican energy reform offers opportunities for UK oil and gas industry
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Mexican President Enrique Peña Nieto arrives in Aberdeen during UK state visit to mark closer ties on energy and climate change.
British energy businesses will benefit from closer co-operation between the UK and Mexico said Energy Minister Matthew Hancock as Mexican President Enrique Peña Nieto arrived in Aberdeen today.
Mexico’s energy system is undergoing significant reform and President Peña Nieto is visiting the UK’s energy capital to speak to energy leaders across the business and education sectors, as well as signing agreements with the UK government for greater collaboration in the areas of energy and climate change.
Energy Minister Matthew Hancock said:
“This visit today by President Peña Nieto to the UK’s energy capital cements the already close links between our two countries and heralds an era of closer collaboration in energy.
“The government of Mexico expects $50 billion of investment by 2018 in the wake of its energy reforms – boosting the economy and creating jobs while rejuvenating production.
“Together with Mexico’s energy ambitions and the UK’s wealth of experience and expertise, now more than ever there are unparalleled opportunities for partnership across business and education.
“The UK has much to offer. Our oil and gas industry is seen as the gold standard across the globe with an exemplary safety record and cutting edge innovation in some of the most challenging conditions in the world.
“And our energy market reforms are bringing on billions of pounds of new investment in renewables as we move to a low carbon economy, with the UK now No1 in the world for offshore wind.”
The President was greeted in Aberdeen by the Secretary of State for Scotland, Alistair Carmichael, and escorted to Aberdeen Town House. There he was joined by Energy Minister Matthew Hancock and introduced to senior representatives of the UK oil and gas companies, including BP and Shell. Both companies this week signed an agreement with Mexico’s investment promotion agency, ProMexico, to stimulate Mexico’s oil and gas supply chain.
The visit included a demonstration of the Mexico 2050 Calculator, a user-friendly model that allows you to explore different scenarios and mitigation options to 2050 that helps plan the country’s energy system. This has been jointly developed by Mexico and the UK governments and is based on the UK’s award-winning 2050 Calculator.
Scotland Secretary Alistair Carmichael said:
“Scotland’s oil and gas industry is seen as a world-leader in terms of expertise, skills and resilience across the world. The memorandums with Mexico I signed in Aberdeen today are a further helpful step for the industry as it looks to deliver services in overseas markets. Mexico is a key partner in this and the recognition of our industry and academic skills are important for both countries as they work together for mutual benefit. The President was keenly aware of these opportunities during his visit to Aberdeen today.”
Mr Hancock added:
“Our governments are one in our determination to tackle climate change and work together towards a global deal at the crunch climate talks in Paris at the end of this year.
“This is why it is important that, through tools like the 2050 Calculator, Mexico and the UK are able to plan and communicate to the public the need to go low-carbon and avoid the worst effects of climate change.”
The President finished his visit at a Robert Gordon University energy education event with senior academics that included a demonstration of the Drilling and Advanced Rig Training simulator (DART).
Notes for editors
The visit is part of the celebrations of the Dual Year of the UK in Mexico and Mexico in the UK which celebrates the close ties between the two nations.
- UK and Mexico Governments memoranda of understanding (MoU) signed in Aberdeen today:
- Energy Cooperation: Broad agreement covers the whole energy sector and includes setting up of a Steering Committee to deliver targeted information sharing in order to support the sound future development of the energy sector in both Mexico and the UK – ensuring that the conditions are right for commercial wins and environmental protection in both countries in the long term.
- Climate Change: Refreshes the 2011 MoU between the Department of Energy and Climate Change in the UK and the Ministry of Environment and Natural Resources in Mexico to work together on sustainable and low-carbon development. It reaffirms the progressive stance of both countries and our shared aim to reach an ambitious, equitable, comprehensive and legally binding global agreement at the COP21 climate negotiations in Paris in December.
- MoUs were also today signed between:
- UK Export Finance and the Mexican State Oil company Pemex: provides for a line of credit of up to one billion dollars and strengthens the opportunity for British businesses operating in Mexico. Both UKEF and UK Trade & Investment (UKTI) will work with Pemex to identify existing suppliers who may be able to benefit in terms of future business and to encourage new suppliers to bid for business with Pemex.
- Aberdeen University and Pemex: to help ensure the right skills and expertise will be there to turn Mexico’s reforms into reality. Cooperation will include human capital development, capacity building and human capital development.