Dos Bocas to Receive More Money for Its Construction
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Dos Bocas to Receive More Money for Its Construction

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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Thu, 03/02/2023 - 08:58

The government will assign more budget to the development of the Dos Bocas refinery, increasing the initial estimate by 75%. Moreover, PEMEX is planning on paying its debt without receiving help or resources from the government. Additionally, the NOC is in talks with JP Morgan and Goldman Sach to refinance its debt. 


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More Budget for Dos Bocas

The government will provide MX$47.234 billion (US$2.362 billion) to PEMEX’s subsidiary PTI Infraestructura de Desarrollo, which is in charge of the refinery’s construction. According to El Universal, this provision will increase the refinery’s costs to MX$313 billion (US$15.65 billion), a 75% increase from the original US$8.918 billion budget. However, President López Obrador said that the cost of the refinery will be US$11.65 billion. According to El Universal, the recently-approved US$2.234 billion are part of this previously authorized budget.

PEMEX to Pay Debt on Its Own

Mexico’s oil and gas industry has watched PEMEX’s US$8 billion debt due in 2023 closely, as the NOC placed US$2 billion with a sizable 10.275% return rate due to the risk that the company’s debt represents. According to Reuters, PEMEX plans to pay its debt due in 1Q23 on its own, with no government help and without resorting to the emission of more debt in the market. According to the sources, federal help will only be granted if prices fall considerably below budgeted oil prices.

PEMEX in Talks with JP Morgan, Goldman Sachs Regarding Financing

PEMEX is in talks with JP Morgan and Goldman Sachs to refinance about US$1 billion of its debt, although the final amount could be higher.

Government Depleted Special Tax Funds to Contain Fuel Price Hike

Mexico's Minister of Finance, Rogelio Ramirez de la O, stated that in response to the recent increase in gasoline costs, the federal government has depleted its reserves of the Special Tax on Production and Services (IEPS). The tax was used to contain rising fuel prices and prevent them from further impacting inflation.

CNH Meets With ASEA, ANPHI to Enhance Collaboration

The National Hydrocarbon Commission (CNH) met with the Mexican Association of Hydrocarbon Producers (ANPHI) to address regulatory concerns. CNH also joined efforts with the Agency of Security, Energy and the Environment (ASEA).

Woodside Energy Pursues Oil and Gas Potential in Gulf of Mexico

Woodside Energy announced it will review potential acquisitions in the Gulf of Mexico after reporting its highest-ever profit. The company said its underlying earnings tripled to US$5.2 billion in 2022 on the back of soaring energy prices and output that jumped more than 70% after the purchase of BHP Group’s energy unit. The result follows a run of bumper profits for global oil and gas producers.

TC Energy Foresees Increased CAPEX in 2023

The Canadian company TC Energy is foreseeing a 30% year-on-year increase in capital expenditure (CAPEX) in 2023, with the majority of resources allocated to expand natural gas pipelines in the US, Canada and Mexico.

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