ASF Detects Issues With Dos BocasThu, 02/25/2021 - 17:46
A report revealed that the Superior Auditor of the Federation (ASF) found irregularities in the accounting for the Dos Bocas refinery, reported Milenio. As detailed in the ASF analysis, which surveyed all federal finances, up to US$3.6 million in payments to the refinery’s contractors and suppliers presented delivery anomalies. Furthermore, some of these anomalies included double payments and unusual day rates for equipment rentals. ASF also determined that the project is not delivering all its weekly reports and paperwork. As a result, man hours are not being observed and regulated properly. A lot of contracting work is also missing basic engineering evaluations.
Ready for more? Here’s the Week in Oil and Gas!
PEMEX Within Range of Technical Bankruptcy: ASF
ASF also surveyed PEMEX’s finances and found out the company presents conditions of technical bankruptcy. El Economista reports that ASF applied a number of mathematical models to the NOC’s balance sheet and came up with stark conclusions. Applying the Altman and Springate models, which are designed to predict corporate insolvency, to PEMEX’s latest financial results, ASF revealed that if PEMEX were a private company, the NOC would present a high probability of declaring bankruptcy in the near future. ASF’s analysis also revealed that the NOC has stopped adding economic value to the government’s finances since 2019, due to its evolving and branching losses.
Braskem Idesa, PEMEX and CENAGAS Closing In on Deal
CENAGAS reported it is close to reaching a new agreement through which natural gas supply to Braskem Idesa’s Etileno XXI plant can be reestablished soon. A report from El CEO reveals that PEMEX and Braskem Idesa are close to finalizing a new version of Etileno XXI’s ethane supply contract, which will benefit the NOC to a larger degree than previously expected. According to an anonymous source, this contract renegotiation is in its final stage and only the “fine-tuning of numbers” remains before Etileno XXI comes back online.
PEMEX LPG Duct Explodes
A leak in a PEMEX LPG duct caused an explosion in the Guanajuato municipality of Penjamo. Proceso reported that local policemen, firemen and PEMEX personnel arrived, after the explosion was noted by nearby communities, in the scene of what was then an ongoing fire at the duct that runs between the communities of Plazuelas and Las Animas. Authorities have reported no deaths or injuries as a result of the incident, so far. They have also provided no confirmation regarding the possible cause of the leak.
Additional Funds Going to PEMEX: López Obrador
President López Obrador announced today that he plans to spend an additional US$4.7 billion on PEMEX to support its exploration and production activities. Milenio reports the president has the intention to orient the NOC towards a reserve replacement strategy, where the main objective of oil production is feeding Mexico’s national refining system. The ultimate goal is to stop all fuel imports by 2023.