Octavio Romero Highlights PEMEX’s Results at CMP 2024

PEMEX’s CEO, Octavio Romero, shared the NOC’s results during this administration at the Mexican Petroleum Congress (CMP) in Tampico, Tamaulipas. CMP was inaugurated with the presence of PEP’s Director, Miguel Ángel Lozada, and Tamaulipas governor, Américo Villarreal Anaya.

On behalf of President Andrés Manuel López Obrador, Romero inaugurated the 18th edition of the CMP, one of the most important events in the oil industry in Mexico, with nearly 5,000 attendees, 13 keynote speeches, eight technical courses, 18,000m2 of exhibition space, and the participation of 143 companies.

“Today’s conference is aimed at providing a general overview of the current conditions of PEMEX,” Romero began, emphasizing the main directive given by the president to seek energy sovereignty through self-sufficiency in fuel and to strengthen PEMEX.

Romero highlighted the reversal in the decline of 1P reserves, which in 2018 were at 7.7Bb of crude oil, decreasing to 7.0Bb in 2019, and increasing to 7.4Bb in 2023 with a projection of 7.5Bb for 2025. Regarding the reversal in reserves, he mentioned that it aligns with the strategy of extracting the necessary oil and gas for domestic refining.

Regarding the production of liquid hydrocarbons, he highlighted the decline from 3.38MMbd in 2004 to 1.72 MMb/d in 2018. According to the data presented by PEMEX, this declining trend was progressively reversed, reaching 1.88MMb/d in 2023. Romero emphasized the increase in new production; of the 1.85MMb/d of production in 2024, 1.04MMb/d come from new developments and adjacent areas, 428Mb/d come from maintenance of the base production, and 317Mb/d come from the base production. He added that the company developed 54 new fields, 31 offshore and 23 onshore, highlighting the development of deeper wells such as Tupilco Profundo, Quesqui, and Ixachi. Moreover, the construction of marine structures was fostered during the administration with significant reductions in time, weight, and cost, he explained.

As for oil production in 2024, it is projected that PEMEX will contribute 1.85MMb/d, while private companies will contribute 52Mb/d, or 3%. Regarding gas, PEMEX produces 98%, or 3.97Bcf/d, while private companies contribute 2% with 94MMcf/d.

As for refining, PEMEX data shows that refining increased from 511Mb/d by the end of 2018 to 1.23MMb/d in 1Q24 with a projection to reach 1.44MMb/d by the end of 2024. The increase in refining has been driven mostly by the maintenance of the National Refining System (SNR), and Deer Park’s output. By the end of 2024, out of the projected 1.44MMb/d, 273Mb/d come from Deer Park, 163Mb/d from the Olmeca Refinery and 1.00MMb/d from the SNR. PEMEX also highlighted the financial success of the purchase of the Deer Park refinery, whose investment was recovered approximately a year and a half after its purchase. He also highlighted an increase in PEMEX's refining profits thanks to Deer Park, which are "among the highest in the last 16 years."

Regarding the financial balance, Romero stated that "PEMEX is not a bottomless pit." Romero presented that PEMEX's financial balance has been positive during the administration, except for 2020. "This means that total revenues have been greater than expenses, including financial costs," Romero mentioned. He highlighted that debt has decreased since 2018, the year they took over the company with a debt of US$131.5 billion after an increasing trend during the two previous administrations. As of 1Q24, the debt stands at US$101.5 billion.

With elections resolved in Mexico, Claudia Sheinbaum has already announced the person who will oversee the Ministry of Energy (SENER), Luz Elena González. Sheinbaum proposes to continue with the administration's energy strategy and continue supporting PEMEX in addition to achieving self-sufficiency in its administration. Despite not achieving self-sufficiency during Obrador’s term, Romero stated that this goal will be achieved over the next administration.