Uncertainty has hovered over the Mexican economy as the new administration slowly discloses its priorities for development. But one thing is certain with the plans unveiled thus far, boosting PEMEX’s production is a priority. AMLO and his team presented the National Hydrocarbons Production Plan on Saturday.
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- The main goal of the plan is to increase production from 1.75 billion barrels daily to 2.4 billion barrels a day by the end of AMLO’s administration
- Recuperate the Cantarell Complex
- PEMEX will move to Ciudad del Carmen
- Increase reserves, focusing on southeast deposits in shallow waters and on land, as well as conventionals in the north
- PEMEX’s revival will center around perforation and the repair of wells
- Increase in investment in exploration of at least 10 percent annual
After announcing the hydrocarbons plan, AMLO is expected to meet with PEMEX’s director to develop a plan to combat fuel theft.
The Proposed Federal Expenditure Budget 2019 will cut the budgets of many entities and there are no new projects in 2019 under the PPP scheme. CFE and PEMEX have been allocated approximately 47 percent of the total public investment of MX$711.4 billion.
AMLO’s political agenda will interfere with the oil and gas industry in Mexico, according to Moody’s after the suspension of the licensing rounds for the next three years.
PEMEX has the highest debt of any state oil company in Latin America and it has investors worried. Fitch and Moody’s have flagged concerns about PEMEX due to its US$106 billion debt, making pension and sovereign wealth funds question whether or not to withdraw investment.
The US Department of Energy estimates that the price of crude will fall to US$11 per barrel.