The Mexican oil producer Cotemar is among several companies that are about to define the new landscape in the Mexican petroleum industry in a post-Pemex environment. Cotemar, which made it through the first round of bidding, and other firms, such as Petrobal, Sierra Oil, Diarqo, Nuuvoil, and Renaissance Oil, are each poised to carve out their own niche in this new, unregulated framework. Expansion, the Mexican news magazine and site, likened the situation to the Wild West.
The challenge for Pemex, as the former state monopoly, will be to learn how to deal with these former providers and clients on an equal footing. Moreover, there are still some details for Cotemar and several other firms to work out in terms of land and mineral rights in Veracruz and elsewhere.
The fourth round of bidding, which will decide which companies receive deep-water rights, is bound to be a watershed moment. These reforms have been largely conceived to boost production and to better exploint the extensive deep-water deposits to which Mexico has rights. According to Expansion, the new framework aims to increase production, advance the national interest, and generate more proceeds and royalties for the Mexican government.
Cotemar is a Veracruz-based company which has traditionally been a provider for Pemex and the rest of the Mexican oil industry. They specialize in all areas of support, including logistics, offshore construction, engineering, and transport. In particular, Cotemar has a fleet of semi-submergible vessels able to provide supplies and transport to extremely deep water drilling operations. Their 37 years of experience and close working relationship with Pemex are likely to be key advantages for Cotemar as they move into oil production and away from support and consulting. Nonetheless, Cotemar will need to compete with other companies that are keen to position themselves in this new market reality.