As a Japanese standard university student in the 20th century, I entered Osaka Gas as soon as I graduated. I wanted to do something important for Japan with poor energy resources. At the time of my graduation, Japanese oil companies and upstream companies were not well known among university students and I chose a utility company which had established close and good relationships with end users.
Energy projects in Brazil and their sponsors remain virtually isolated from access to competitive international sources of project finance, as they are denominated in USD, which increase the FX risk.
I see, at this point in time, corporates leading the transition to a low carbon economy -with the right policies and incentives by governments, investors building climate-resilient portfolios and consumers using their purchasing power.
Current clean energy technologies are (often) bankable and even competitive nowadays compared to grey projects. This means investors should (and they do) invest in these projects.
The cancellation of the auctions has complicated the possibility of signing long-term contracts with a qualified offtaker that make the project bankable.
We choose to regard the cancellation as an opportunity. It forced us to review /reset our business strategy to become less dependent on governmental decisions.
Since the beginning of the market 4 years ago, investors and market participants have needed more data in order to accurately forecast prices and quantify risks.
Infrastructure is our biggest challenge in Mexico. Inter-connectivity and the capacity to process hydrocarbons in harmony with Pemex’s current capacity.
Given that we can invest both directly or through our platforms and jointly with our investors, we can be quite flexible from an equity check perspective. We do both greenfield and brownfield, obviously seeking different returns.
In order to secure the participation of the private sector in the future development of the generation infrastructure no changes should be made to the existing regulation; growth should be obtained via wholesale energy market consolidation.
Time is our biggest challenge. The exploration period is very short at two years, and with the time taken to do diligent subsurface work, and obtain all required permits to drill, it leaves a short time window to explore effectively.
Gavin Thompson provides his view on the opportunities and challenges that Asia’s Oil & Gas sector faces in 2020, and what he is looking forward to most about the APAC Assembly.
It is no secret that Vaca Muerta is a significant potential source of revenues for the country and a platform for large investments seeking attractive returns.
I believe Mexico continues to be a good option to invest in 2019. Despite the uncertainty related to the installation of a new administration, the needs, and hence the opportunities across the value chain remain