With the whereabouts of former PEMEX Director Emilio Lozoya unknown, the alleged corruption scandal carries on. Meanwhile, PEMEX receives the green light for developments on Cahua and Mexico’s refineries increase their output by 14 percent.
All this and more, in our Week in Oil and Gas!
Check out our Interview of the Week with James Buis, District Manager at Nalco Champion, where he discusses the company’s plans for increasing production capacity in Mexico. Read it here!
Scandal Continues as Lozoya Flees
The story of Emilio Ricardo Lozoya, the former head of PEMEX who last week was barred from public office for allegedly hiding assets and bank accounts, has taken various twists and turns this past week.
While Lozoya’s whereabouts are unknown, there are concerns that he may have fled to his wife’s home country, Germany, which does not have an extradition treaty with Mexico.
Tabasco State Gov. Says Dos Bocas to Bring Benefits
While industry analysts have raised concerns about the viability of the Dos Bocas refinery, a multibillion- dollar engineering work that will get underway at the end of 2019, the Tabasco state authorities have said that the construction should trigger local economic benefits.
This is good news for the state, whose economy is on the slide, with growth falling 10.6 percent between October and December 2018.
AMLO and CEMDA Disagree on Dos Bocas
Mexican President Andrés Manuel López Obrador and environmental groups, including the Mexican Center for Environmental Law (CEMDA) and Greenpeace, publicly disagreed on the authorization of environmental and social impact studies that must be in place before beginning the Dos Bocas construction.
The president says that the Ministry of the Environment and Natural Resources (SEMARNAT) have given “prior authorization” to the project. However, CEMDA has stated that the impact reports have not been submitted to SEMARNAT’s Agency for Safety, Energy and Environment (ASEA), which oversees environmental concerns relating to the oil and gas industry.
PEMEX Gets Go Ahead for Cahua
The NOC’s development plan for its shallow water field, Cahua, which stretches between Veracruz and Tabasco, was given approval by the National Hydrocarbons Commission (CNH) this past week.
The approval will trigger an investment of some US$317 million by PEMEX on Cahua, which PEMEX PEP has said contains 3P reserves totaling 12.4MMb.
Refineries Increase Processing Production
Mexico’s National Refining Systems reported that the nation’s refineries collectively increased their processing rates by 14 percent from November 2018 to April 2019.
PEMEX Director Octavio Romero highlighted the refineries at Cadereyta, Minititlán and Salamanca as those providing the best improvement on recent figures. This is good news for the country’s refineries, which in 2017 hit their lowest production levels since 1992.
PEMEX Not in the Clear, Says Fitch Ratings
International ratings agency Fitch Ratings says the Mexican government’s recent move to reduce the tax burden of the nation’s NOC will not be enough to stabilize its debt status.
The Fitch Ratings report stated that, considering the contributions to be made to the Dos Bocas refinery this year, the government’s tax reduction measures would reach about 10 percent of the required 50 percent reduction in tax.
PEMEX to be Fortified in Three Years
President López Obrador said that PEMEX’s position will be far stronger in three years than it is today, once the government’s tax burden reduction measures, fight against fuel theft and maintenance work of the country’s refineries begin to show benefits.