US Congressman Calls For Sale Of Deer Park Refinery To Pemex To Stop

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Congressman Brian Babin asked the Department of State and the Treasury of the United States oppose the sale of the operations of the refinery Deer Park Texas Petroleos Mexicanos ( Pemex).

What was said? In a letter addressed to both US agencies, Babin argued: “Pemex does not have the executive, managerial or technical experience to operate this state-of-the-art facility safely.”

List risks. He indicated that the sale of the Texas refinery “greatly increases the risks of an industrial accident, of serious local environmental degradation and damage to our local economy due to poor business management.”

Among others, Brian Babin said the transaction could pose a “serious environmental, health and economic security risk to the citizens of Texas.”

The latest. In addition, the congressman announced that he also sent a letter to the Committee on Foreign Investment in the United States (CFIUS), which will be in charge of approving or rejecting the sale of the refinery.

“None of Pemex’s refineries in Mexico can compare to the state-of-the-art facilities at Deer Park, and it is doubtful that Pemex can invoke the operational experience, compliance, and maintenance professionals necessary to safely operate an integrated refinery in the United States. ”, Declared the congressman in the document.

Babin recalled that Pemex’s negative record with US companies is “abysmal.” He cited the refusal to pay a $ 230 million contract with a Texas firm, Loadmaster Universal Rigs, risking the livelihoods of 2,000 Americans and hurting dozens of American firms.

“Pemex has displayed an infamous long pattern of contract negotiations, widespread corruption, including bribery, and tactics described by its victims as ‘financial terrorism,'” added.

Given these reasons, the Texas legislator sent a letter to the regulator responsible for approving the sale, the Committee on Foreign Investment in the United States (CFIUS), with the aim of preventing the commercial operation.

On May 24, 2021, the oil company headed by Octavio Romero Oropeza announced the total purchase from the private company Shell for a refinery with the capacity to process 340,000 barrels.

Pemex will disburse 596 million dollars plus the value of inventories, valued in a range of 250 to 350 million dollars.

The operation divided analysts on whether it was a good or bad investment because as the world moves towards the use of electric vehicles, the demand for fossil fuels in Mexico will continue until 2050, according to estimates by the Mexican government.

Source: forbes.com.mx, politico.mx

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