Mexico in Brief
From Mexico in Brief Newsletter
ENI FINDS A NEW OIL FIELD IN MEXICO.
Italian oil company Eni has discovered a new oil field in the Southeast region of Mexico that may have reserves of between 150 and 200 million barrels. The company found 55 meters of net production of good quality oil and the well may have an estimated production capacity of up to 3,000 oil barrels per day. Eni currently produces more than 20,000 oil barrels per day, but with this new discovery its capacity is expected to increase to 65,000 oil barrels per day by 2022 and reach an average of 90,000 by 2025.
SPAIN IS MEXICO’S SECOND FOREING INVESTOR.
During the first semester of 2021, Spain was positioned as the second foreign investor in the country, representing a 9.1% of the total investment received. During the second quarter of 2021, Mexico received U.S.$22.8 million from Spanish investments and the sectors of financial and insurance services received the highest flow of investment coming from Spain, with an increase of 320% regarding the same period in year 2020.
HOKCHI ENERGY OPENS NEW PLANT.
After about two years of construction, the oil company Hokchi Energy has inaugurated a plant with a processing capacity of 35,000 barrels of crude oil per day and 13 million cubic feet of gas per day. Hokchi Energy was the first private company to obtain the endorsement of an oil development plan, receiving the approval to invest approximately U.S.$1.8 billion for the period of 2022-2040. Such plan includes the construction of two offshore platforms, 100 kilometers of submarine pipelines and the drilling of 14 wells.
MEXICO: A POPULAR INVESTMENT DESTINATION FOR CHINA.
As the USMCA becomes relevant for commercial transactions, Chinese companies have been investing in Mexico in order to benefit from the agreement’s benefits for the automotive, energy and telecommunications sectors. Over the last two years, Mexico has received approximately 20.3% of China’s foreign investment, becoming the third preferred destination for Chinese investment in Latin America. Chinese companies such as BAIC, DiDi, ZTE, Huawei, Xiaomi, Hisense, Bank of China and Sinohydro have invested approximately U.S.$14 billion in Mexico over the past 20 years, U.S.$5.8 billion of which were invested only between years 2019 and 2020.
LAMOSA SETS FOOT IN EUROPE.
Grupo Lamosa, a Mexican ceramic company, recently announced the acquisition of Spanish company Grupo Roca’s ceramic tile business for approximately U.S.$260 million. The acquisition includes the operations of Tiles Investments and Holdings along with its subsidiaries, which are comprised of two plants in Brazil, one in Spain and several sales companies in the United States. This will be Grupo Lamosa’s largest investment abroad and it represents its entrance to the European market.
MEXICO REACHES HIGHEST FDI LEVELS IN THE LAST 8 YEARS.
According to the Mexican Ministry of Economy, foreign direct investment (FDI) in Mexico increased 2.6% in the first semester of 2021, adding up to U.S.$18.4 billion, the highest investment recorded in the last eight years. Among the countries that contributed to such FDI amount are Spain, United Kingdom, Germany and the United States, the latter representing a 50.8% of such amount. The FDI is coming mainly from manufacturing companies.