Mitsui & Co — one of Japan’s biggest energy investors — is looking to Mexico.
Yasuhiro Uchida, a general manager of oil and gas development at Mitsui, told the Wall Street Journal that “Mexico has good prospects, large energy reserves, easy access to almost anywhere in the world and free trade agreements with major economies. It also has a young population that will boost growth in the future.”
He said Mitsui is looking at onshore shale reserves near the Texan border with Mexico and deep-water reserves in the Gulf of Mexico.
For the first time in 75 years, Mexico will allow foreign investment in energy assets after a 10-year decline in output.
Mitsui would be open to ventures with state-owned Petróleos Mexicanos, or Pemex, Uchida said.
The report said Mitsui signed a memorandum of understanding with Pemex in late May to discuss future oil and gas development opportunities including exploration, production, and marketing.
“Mitsui plans ¥1.5 trillion ($14.75 billion) in investments in the next three years with 60% aimed at its energy sector” the Wall Street Journal said, “targeting a 40% boost in energy production to 330,000 barrels a day of crude oil equivalent and a doubling of gas liquefaction capacity to 9.4 million metric tons a year by March 2021, according to its latest business plan, announced in May.”