First spot cargo of Mexico's privately produced Mizton crude to be offered in March: sources

The first cargo of Mexican crude produced by a private foreign company is expected to be offered in a tender by March, according to multiple market sources.

Mizton is a medium sour crude (28.5 API, 1.53% sulfur content) produced at the offshore Amoca, Miztón and Tecoalli fields operated by Italy's Eni since 2019.

Pemex trading arm PMI will be the marketer, sources said.

Eni and PMI did not immediately respond to requests for confirmation on their plans.

On Jan. 27, PMI updated its website to include information about future auctions of Mizton crude. Additionally, PMI listed new light, medium and heavy crudes produced by private companies or in partnership with Pemex.

Mizton was the only crude with more information confirming an upcoming auction.

Currently, Pemex sells its flagship Maya, Isthmus and Olmeca crudes in long-term contracts based on monthly official selling prices.

Sales of Mizton will be handled separately, but market sources did not provide information about which benchmark price basis this crude will be traded.

The tender comes when Pemex recently announced plans to reduce exports of crude to the US to 435,000 b/d in 2022 and stopped completely by 2023.

Pemex recently completed its purchase of Shell's 50% stake in the 340,000 b/d Deer Park, Texas, refinery, giving it 100% ownership. The refinery is now expected to consume more barrels of Mexican crude that have been historically exported to international markets, with refined product exports aback into Mexico.

Mizton crude will be offered in cargoes of 500,000-600,000 barrels and will be loaded out of the Miamte floating production, storage and offloading vessel sources said.

Eni recently announced the Jan. 3 arrival of its 90,000 b/d FPSO to the coast of Tabasco state.

In July 2019, Amoca-Mizton became the first complex operated by a private company to begin production in Mexico as part of the energy reform that allowed the participation of private investors in Mexico's oil industry after 70-year of monopoly.

The field currently produces around 15,000 b/d and is expected to increase up to 90,000 b/d.