MEXICO CITY (Reuters) -Mexico’s government on Tuesday announced a plan aimed at moving its highly indebted state oil company Pemex toward financial self-sufficiency, and the establishment of a new investment vehicle and efforts to stabilize oil production.
President Claudia Sheinbaum told a press conference that by 2027, Pemex “will no longer need the finance ministry’s support,” referring to the recent support it received from the government to pay down debt.
“Pemex is going to have sufficient revenues to be able to pay its debt, its amortizations and have the sufficient budget for the investment it requires,” she said.
The world’s most indebted energy company, Pemex reported last week a financial debt of $98.8 billion.
That week, the Mexican government announced a $12 billion debt offering to ease Pemex’s short-term financial pressures and support debt refinancing.
Speaking after the president, Pemex Chief Executive Victor Rodriguez outlined several operational initiatives to support the plan, including leading the development of the Zama and Trion fields and reactivating other fields with potential.
Officials also announced a new government-backed investment vehicle to raise up to 250 billion Mexican pesos ($13 billion) this year in efforts to boost production.
In addition, Pemex intends to build three new pipelines. To improve profitability, Rodriguez said that Pemex would adjust its price formulas and eliminate unjustified discounts.
($1 = 18.8228 Mexican pesos)
(Reporting by Ana Isabel Martinez and Adriana Barrera; Additional reporting by Raul Cortes Fernandez; Writing by Brendan O’Boyle; Editing by Stefanie Eschenbacher and Alistair Bell)
