Mexico's EIM Capital and an affiliate American Energy Partners LP (AELP) announced on Sept. 1 a new, long-term partnership to explore and develop Mexico’s unconventional oil and natural gas reserves.
When certain conditions are completed, AELP will invest in EIM Capital, a private-equity fund, to jointly pursue investments in Mexico's energy industry and explore unconventional oil and gas development.
Mexico has more than 60 billion barrels of shale resources, according to Energy Information Administration estimates. This would provide more than 35 years of Mexican oil supply at current U.S. production levels. These resources could become highly economic for developers and producers and bolster a strong North American energy policy.
EIM Capital, based in Mexico City, is led by CEO Franco C. Hamdan and former Mexican President Vicente Fox.
Oklahoma City-based AELP is led by Aubrey K. McClendon, former co-founder and CEO of Chesapeake Energy Corp (CHK), and now chairman and CEO of AELP .
"We are excited to partner with one of the world´s most experienced and efficient unconventional producers, who under the right operating environment could help unlock Mexico´s unconventional energy resources and spur an energy boom which would be transformational for the Mexican economy," said Hamdan, founder and CEO of EIM Capital.
"Mexico's proximity to the U.S. market's established infrastructure, service providers, and operators could help quickly scale the nascent Mexican shale industry and, with the right conditions, Mexico could rapidly emerge as a global leader in energy production. We are excited about this partnership's potential to create these favorable conditions and benefit Mexico through job creation and technology," he said.
"This partnership will provide significant value to both companies and to the Mexican economy," said McClendon. "EIM's knowledge of and investments in Mexican infrastructure coupled with AELP's knowledge of and operation within the unconventional energy industry will produce unparalleled opportunities as this exciting project progresses."
C3 AI and Baker Hughes have revealed an artificial intelligence (AI) collaboration with Petronas on Feb. 26 to apply BakerHughesC3.ai (BHC3) technology across Petronas’s strategic digital transformation programs.
Innovative artificial lift technology will help oil and gas companies meet environmental and production goals.
Collaboration and innovation are crucial to advancing technologies needed to meet the growing push for sustainability and cleaner forms of energy, Exxon Mobil executive says.