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Weekly Roundups

American Society Demands Change of Zama Decision

Thu, 07/08/2021 - 18:28

The American Society of Mexico (AmSoc), representing the American business community in the country, has criticized the decision announced this week by SENER to grant PEMEX operational control over the Zama reservoir. In response, Larry Rubin, president of AmSoc, has sent a request to President López Obrador to change the decision so that the reservoir can remain in the hands of American operator Talos Energy. Rubin argues that, if left in the NOC’s hands, the reservoir will not be properly exploited due to PEMEX’s budget and infrastructure limitations, and this would represent a loss for the entire country. 

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Purchase of the Deer Park refinery “still in process”: AMLO 

President López Obrador said that the agreement for the purchase of the Deer Park refinery in Houston, Texas is still in process, despite the various positions authorities of both countries have had. “A proposal was made to Shell to sell us 50 percent of the shares so that PEMEX owns this refinery and the company agreed. An agreement has already been signed and the corresponding procedures are being carried out in the US. Now, we have to wait for the process to complete,” said the president. In May, PEMEX announced an agreement with Shell to buy the Deer Park refinery by acquiring 100 percent of the shares. Member of the US House of Representatives Brian Babin sent a letter to the Committee on Foreign Investment (CFIUS) to stop the purchase of the refinery, arguing that PEMEX has a "bad track record" with US firms.

PEMEX Offshore Fire Under Control

President López Obrador said the fire on the ocean’s surface near a PEMEX platform early last Friday was from a marine pipeline leak and not intentional. He confirmed that an appraisal had been carried out to understand the damage caused. “PEMEX and the Ministry of the Environment already carried out an appraisal and analysis of the damages and we are going to repair the damages. It was an accident that happened. We ruled out that it was something intentional.” According to reports, the fire was sparked by a gas and nitrogen leak in a gas pipeline that, when combined with electrical charges from a storm at the time, exploded. The president added that the fire, “was controlled relatively soon, in a very few hours.”

Distribution of Gas Bienestar to Begin in Three Months

President López Obrador announced that gas distribution by the new company Gas Bienestar will begin in three months in Mexico City. “We are already planning the start of its distribution in Mexico City. We have the resources and now we just have to work on the last details.” This came after the president recently announced the creation of Gas Bienestar, as a state company which will distribute 20 and 30kg gas cylinders. The government announced that it seeks to provide a fairer option by creating a new alternative in the market as prices increase. López Obrador said that it will not affect existing companies, since fair competition in the market will be promoted.

Investigations for Fuel Theft and Corruption Deepen as Gas Prices Rise

President López Obrador announced that the allegations of fuel theft and bribes, specifically charges for loading fuel that is distributed at gas stations, will be investigated. López Obrador explained that if it is true there will be no impunity with those responsible. "Nobody is above the law in PEMEX, not in the government, not the director, nor any official." The president also announced that next Tuesday there will be a meeting to address the rise in gas prices, which is the only fuel with an upward trend in cost. López Obrador explained that the high prices are due to the monopoly in the market. “We are going to review and address this increase, there are many ways to control it. In the case of gas, if necessary, we will establish a maximum price, which the technocrats will not like.”

The data used in this article was sourced from:  
MBN
Photo by:   PEMEX