Pemex looks to hike production and reduce imports


 Andrés Manuel López Obrador (known as AMLO) is continuing to push for boosting Petróleos Mexicanos’ (Pemex) role as a lever of national development. In line with his vision, state-owned Pemex has earmarked $105 billion of capital investments in its 2023-2027 business plan to boost liquids and natural gas production and reduce certain import dependency.

Pemex’s plans to boost its participation in the national oil market will require addressing formidable headwinds including management of its long-term debt of $105 billion at the end of the third quarter of 2022 and, importantly, its flagging production levels.

The Mexico City-based company’s 5-year business plan foresees roughly 92% of its capital outlays destined for E&P activities to boost liquids (oil plus condensates) by 18% and gas production by 9%, the company announced in mid-Dec. on its website.

Pemex’s production goals are based on three scenarios: base, minimum and alternate. The base scenario stems from basic economic and financial premises laid out in Mexico’s national development plan. The minimum scenario, the basis for Pemex’s most realistic goals in its business plan, stems from a conservative oil market perspective, while the alternate scenario builds on the base scenario and considers greater resources that could allow production and infrastructure projects to be brought forward.

Source: El Financiero

Mexico Daily Post