Further clarity was given to the government’s plans for the construction of the Dos Bocas refinery last week, as Secretary of Energy Roció Nahle explained the thinking behind the government’s decision to have PEMEX take project lead.
The administration gave further tax breaks to PEMEX to aid its precarious financial situation, and more good news came as the NOC’s maturing debts, due to be paid this year, were partly refinanced.
Permitting issues are still causing problems for many energy projects, but drilling should soon take place by a Mexican company, Marinsa, on Xikin soon.
Check out our Interview of the Week with Timothy Duncan, President and CEO of Talos Energy, where we discuss the company’s historic Zama discovery in Block 7. See it here!
Keep reading to find out more about this past week’s action!
PEMEX to Manage the Dos Bocas Construction
Following the announcement by President Andrés Manuel López Obrador that PEMEX would be constructing the new refinery in Dos Bocas, Secretary of Energy Roció Nahle last week stated in an interview with La Jornada that PEMEX and SENER, and not the constructors, would actually be the project managers of the refinery.
Nahle said that the construction will be undertaken in six separate stages and that national and international companies will be invited to bid for contracts at every stage.
Take a look at the full interview here.
Tax Breaks for PEMEX
The SHCP this week announced more measures to free PEMEX of its tax burden, as the heavily indebted NOC faces the task of paying off mounting debt while boosting oil production.
Carlos Urzúa, the Minister of Finance and Public Credit, said that PEMEX’s tax payment would be reduced to 400Mb/d, giving PEMEX “huge breathing space.”
The measure is part of the government’s strategy to save around US$580 million per annum for PEMEX, reported in January this year.
Find out more, here.
Government Agrees Loan Help for PEMEX Debts
The Mexican government reached an agreement with HSBC, JP Morgan and Mizuho for a US$8 billion syndicated loan to aid the payment of PEMEX’s debts. Some US$2.5 billion will be used to refinance maturing debts scheduled to be paid this year.
President López Obrador said the agreement “shows confidence in Mexico and its government.”
HSBC, one of the main lenders, also underlined its commitment to PEMEX and Mexico this week.
See the full article, here.
Marinsa Hopeful of Drilling on Xikin
The Mexican marine-turned-service company, Marinsa, hopes to begin drilling in the shallow water field Xikin in June.
The company must first wait for PEMEX to approve the engineering plan for the well.
To find out more, just click.
Permitting Problems Cause Standstill of 53 Projects
Abel Hibert, the Deputy Head of Innovation and Analysis to the President’s Office, told the Energy Innovation Forum 2019 that a total of 53 energy projects are being held up in the country due to permitting problems, social issues and contracts being placed on hold.
Among these projects, 10 relate directly to PEMEX and represent around US$6.2 billion.
Click here to see the rest of Hibert’s comments.