Pemex reassigns Hernandez, drops jackups

May 14, 2015

Mexican operator Pemex has reassigned Pemex Exploration and Production (PEP) Director General Gustavo Hernandez and replaced him with chief of staff Juan Javier Hinojosa Puebla, several news wires report.

Bloomberg said that Hernandez requested a 40-day reassignment where he will be focused on helping the company form partnerships with private companies seeking to enter Mexico’s energy industry. It is likely that a PEP restructuring will be entertained at the next Pemex board meeting on 22 May.

Pemex has had a rough couple of weeks. On 5 May, an accident killed two workers on an offshore maintenance rig in the Bay of Campeche at the Abkatun-Pol-Chuc field. On 1 April, seven workers were killed when a blaze erupted at the Abkatún Permanente platform in the same field complex.

The Mexican operator is also dealing with budget constraints. According to a 13 May 1Q 2015 earnings report, Paragon Offshore announced that the company received written notices of termination by PEP for drilling contracts concerning jackups Paragon L1113 and the Paragon B301, both of which can drill in water depths down to 300ft. Paragon says the contracts end date is expected to be late May. The contract cancellations deal a $64 million blow to the rig provider.

In a May 14 conference call, Paragon Offshore's senior vice president, marketing and contracts, Andrew W. Tietz announced that Pemex canceled a third contract on Tuesday for jackup L781. Tietz called the decision "disappointing" and said that the rig's work scope was not approved and Pemex would release the rig later this week. 

Image: Gustavo Hernandez/Pemex



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