Investors Want PEMEX to Increase ESG EffortsBy Cas Biekmann | Wed, 02/16/2022 - 18:10
A lack of adequate ESG plans could harm PEMEX’s efforts to attract investment. BP and Equinor leave a deepwater block to their third partner, TotalEnergies. In other news, PEMEX’s financial outlook improves to a degree, though other issues weigh heavy on the state oil company.
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President López Obrador’s mission to rescue the NOC is facing a major hurdle in the company’s lack of tangible environmental, social and governance goals. Major investors are aware that analysts deemed PEMEX’s emissions dangerous and employee insecurity to be “extreme” and argue that a solid ESG plan is essential to attract more private investments.
CNH has greenlighted BP and Equinor’s request to renounce their participation in a Salina Basin deepwater block off the coast in Tabasco and Veracruz. As a result, TotalEnergies remains the sole operator of the Block.
PEMEX reported losses stemming from 2017 valued at €55 million (US$62.5 million) due to its investment in Repsol shares. The information surfaced amid new spying allegations against the Spanish oil company’s president. In addition, the troubled relationship with Repsol has become a significant part of President López Obrador’s grievances with Spain, leading to last week’s suggestion to “pause” Mexico’s relations with the country.
Amid consistent claims from US lawmakers to Mexico´s government for blocking US fuel retail companies, PEMEX closed 2021 with promising figures and is ready to take over the fuel market.
A recovery in oil prices has proven to be a boon to PEMEX. Nevertheless, the Mexican government has not yet benefitted from the situation, mainly because of the administration’s support to the NOC.
In the midst of corruption allegations against President López Obrador’s son and Baker Hughes, the value of contracts between PEMEX and the Texas oil company have tripled, going from US$142 million in 2018 to $US434 million in 2021, according to an investigation led by independent journalist Peniley Ramirez.
A fire caused 15 workers to be rescued from a platform on the Octli field, approximately 23 km away from the Tabasco and Veracruz shores. The fire was controlled swiftly, but still adds another entry on the NOC’s offshore safety record.
The producer of crude and shale oil plans to invest heavily in its prominent Argentinian operation for the next five years, with the goal of doubling its production to 80MBOE/d.