It was another mixed week for Mexico’s oil and gas industry as the financial woes of PEMEX were once again laid bare, with the company reporting heavy losses for 2018 and causing concern in the market. The IMF waded into the fray and called for Mexico’s most important company to come up with a clear route to financial security. Oil and gas players will be happy to hear that PEMEX farmouts, which were canceled last week, are back on. And finally, the long-awaited date for the beginning of the Dos Bocas refinery construction has been given.
In our Interview of the Week, Mexico Oil & Gas Review spoke to Rossy Perez of Beicip Franlab, an independent petroleum consultancy and geoscience software editor delivering exploration and field development solutions to Mexico.
- PEMEX Reports Losses of MX$148.6 billion
On Wednesday, PEMEX senior management presented their report on the company’s performance up to the end of 2018, including a loss of MX$148.6 billion over the previous year.
The loss was put down to a number of factors, including the weakness of the peso against the dollar during the year.
The good news is that PEMEX drastically reduced losses in comparison to 2017, when the company’s shed a whopping MX$280.9 billion.
- IMF Tells PEMEX to Make a Plan
Alejandro Werner, Director of the IMF’s Western Hemisphere Department, on Friday said in an interview with El Financiero-Bloomberg that PEMEX would soon need to come up with a plan that moved from relying on federal hand-outs.
Until then, Werner stated that PEMEX should “eventually have a commercially strategic and productive business plan” to achieve a balance between government support and sustainable business operations.
Get the important points from the interview here.
- PEMEX Farmouts to Continue
After last month’s decision that PEMEX farmouts would be stopped, Martín Álvarez of CNH announced on Friday that the tendering process would instead continue.
The farmouts for the 26 on-shore fields are set to go ahead Oct. 9. There are 19 interested parties though only 13 have so far been authorized to take part in the tender.
- Dos Bocas Construction to Begin at the End of this Year
PEMEX Director Octavio Romero, announced this week that the Dos Bocas refinery will begin construction at the end of this year.
The company’s flagship project in Tabasco state will require MX$57 billion of investment and, according to Secretary of Energy Rocío Nahle, will be capable of processing 340,000 b/d of crude.