CNH Revises Regulatory Provisions

In the context of COP28, PEMEX, as well as other major oil companies, were excluded from an agreement signed by 50 major global oil companies committing to achieve zero pollutant emissions by the year 2050. Meanwhile, PEMEX and CNH reaffirmed their commitment to develop the Lakach field. Moreover, AMEXHI celebrated CNH’s recent regulatory revisions.

PEMEX also reported on the development of Tula Refinery's coking plant, while the NOC’s gasoline production reached its lowest level since October 2020.

Mexico Business Summit’s first edition addressed the role of natural gas in Mexico’s economy and the steps forward for its development.

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AMEXHI Celebrates CNH's Regulatory Revisions

The Mexican Association of Hydrocarbon Companies (AMEXHI) praised CNH's changes to provisions governing hydrocarbon exploration and extraction. AMEXHI sees these modifications, including streamlined regulations, as generating administrative savings with multiplier effects on projects. The changes aim to enhance efficiency in compliance and allow operators to allocate resources to technical and operational activities. AMEXHI welcomed CNH's consideration of industry recommendations during the public consultation process, emphasizing collaboration for the benefit of Mexican society.

Lakach Development Continues Despite PEMEX, New Fortress Split

Despite the fall out with New Fortress Energy (NFE), CNH emphasizes that the development of the Lakach field remains attractive for PEMEX and potential collaborators. While NFE decided not to continue, CNH affirms Lakach's potential and expresses PEMEX's interest in partnering with other companies to advance the deepwater project. Interested parties are already in discussion, and Lakach remains one of PEMEX's assignments, subject to a new plan presented by the oil company.

NOCs Not in Global Decarbonization Accelerator Program

PEMEX was excluded from an agreement signed by 50 major global oil companies committing to achieving zero pollutant emissions by 2050. The agreement, part of COP28's Global Decarbonization Accelerator program, includes companies like BP, Aramco, Equinor, ExxonMobil, but PEMEX is not listed among the signatories. The commitment focuses on future energy systems, fossil fuel sectors, and emission-intensive industries. The 50 participating companies represent 40% of global oil production. Other national oil companies like Kuwait Petroleum Corporation and Sinopec are also not on the list.

PEMEX Nears Completion of Tula Refinery's Coking Plant

PEMEX reported that it is finalizing details to start operations at the Tula coking plant by December 2023, aiming to produce over 75Mb/d of gasoline and diesel. However, the Federal Auditor's Office uncovered financial irregularities, emphasizing the need for clarification on MX$62.44 million related to maintenance and waste utilization.

Gasoline Production Hits Lowest Levels Since 2020

PEMEX faces challenges as its gasoline production hits the lowest level since October 2020, reaching 167.8Mb/d. Despite efforts to increase output, annual production in 2023 is declining compared to 2022. The Francisco I. Madero Refinery operated at only 2% of capacity in October, producing 3.655Mb/d of petroleum products, impacting the overall National Refining System. Despite PEMEX's goal of self-sufficiency, current data shows a substantial gap, with imports covering 60.7% of national consumption.

PEMEX to Allocate US$6.3 Billion to Pay Interest on Debt

PEMEX will allocate MX$109.1 billion (US$6.3 billion) to pay the interest on its long-term financial debt in 2023. About 79% of the debt is at a fixed rate, and 80% is in dollars, mitigating volatility. Despite efforts, PEMEX's oil reserves are projected to generate insufficient revenue to cover its US$105.8 billion long-term debt.

Mexico Business Summit Addresses Natural Gas Infrastructure

Experts from eight different industries gathered at Mexico Business Summit 2023 to discuss a variety of topics relevant to Mexico’s economy. Experts from the natural gas and energy sector discussed the country’s needs for infrastructure and the role of natural gas in the face of growing energy demand. Click here and here to learn more  about the discussion!