President Andres Manuel Lopez Obrador redoubles his attempts to prop up the heavily-indebted state-run oil company. Those so-called debt amortization payments will figure over $6 billion in 2021. Chief Executive Officer Octavio Romero spoke Thursday at an event in southern Mexico in the president’s home state Tabasco, one of the country’s largest oil producers.
The president of the republic has endeavored, since the campaign, to preserve Pemex, and he is showing that with actions, Romero said, standing beside Lopez Obrador.
The two talked at an event marking the anniversary of the 1938 takeover of foreign oil assets.
Pemex declared its financial debt at $113.2 billion at the end of 2020, notwithstanding several government injections to support its limited finances.
This year, Mexico’s fiscal deficit will increase to 4.1% of gross domestic product, with continuous support for Pemex running up debt rating agency Moody’s prediction in late February.
Pemex has witnessed oil output slide for 16 uninterrupted years
Moody’s predicted that Pemex would require $14.7 billion in government support this year only.
Romero told Pemex had built a new 500-600 million barrel discovery and that the company hopes to end 2021 with production close to 2 million barrels per day (BPD).
Pemex has witnessed oil output slide for 16 uninterrupted years as its most significant, primarily offshore deposits, have been extensively tapped.
Lopez Obrador said Pemex’s tax bill would be moreover decreased without giving details. He also published a sharp decline in its oil production goal in the future to no higher than 2 million BPD, couching it as an environmental imperative.
With this moderate production, they’ll achieve the commitment to replace, which is the norm, 100% of the established reserves. That way, they’ll bypass the unnecessary use of fossil fuels, they’ll proceed to act responsibly, and they won’t influence what future generations will inherit, Lopez Obrador stated.
In late 2018, Pemex intended to increase crude production to over 2.6 million BPD by his six-year term ends in 2024.
The company currently draws about 1.7 million BPD, and sector analysts have generally been downbeat on the possibility of any significant active uptick.