Oil Industry Closes 2022 Below Coveted Production Targets
Mexico’s government may find that PEMEX’s 2022 results leave much to be desired as refining and production levels do not reach target levels. Despite this administration's insistence on its refining strategy, the National Refining System’s modernization is still far from ensuring energy self-sufficiency for the country. In other news, the government promises once more a new date to launch refining at Dos Bocas. Moreover, private players do not reach production targets either.
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PEMEX Fails to Reach Production and Refining Targets in 2022
Annual oil production registered its lowest level in the past 43 years. Similarly, private players reported production of approximately half of their combined original production target. Amid low oil production, PEMEX also failed to hit its refining targets.
PEMEX, UIF Sign Agreement to Fight Corruption
PEMEX announced that it signed an agreement with the Financial Intelligence Unit (UIF), to collaborate in the fight against corruption and eradicate irregular business practices. PEMEX CEO Octavio Romero reiterated the company’s commitment to cooperate with the unit’s work. According to Romero, PEMEX was already sharing information with the unit but the agreement would formalize this collaboration.
Government Promises to Start Refining at Dos Bocas
President López Obrador defended its hydrocarbons and refining policy at his morning conference and promised the Dos Bocas Refinery will start refining in July 2023. Rocío Nahle, the Mexican Minister of Energy also promised the country will start refining in Dos Bocas on July 1, 2023. Nahle had previously delayed the launch of operations at Dos Bocas to December 2022.
Mexico Has Become Less Energy Self-Sufficient
The Rice University’s Baker Institute for Public Policy published its 2023 outlook on Mexico and revealed that the country’s energy self-sufficiency has decreased in recent years despite the government’s efforts to boost independence. The institute forecasts that during 2023, federal efforts to continue shielding PEMEX and CFE will continue as the government works to achieve its long-promised energy self-sufficiency.
PEMEX Flared US$342 million of Resources at Ixachi, Quesqui
According to documents gathered by Reuters, PEMEX burned off natural gas and condensate at the Ixachi and Quesqui fields. Over three years, US$275 million worth of resources were destroyed at Ixachi, while another US$67 million were wasted at Quesqui in two years. PEMEX’s lack of gas infrastructure appears to be linked to this administration’s ambitious goals to meet oil production targets.
ASA Increases Fuel Supply by 13.4% in December 2022
The Airport and Auxiliary Services (ASA) Network delivered a total of 491 million liters of jet fuel in December 2022, an increase of 13.4% from the same month in 2021. State oil and gas company PEMEX is Mexico’s main jet fuel producer.
As the dates to pay its amortizations approach, PEMEX plans to issue bonds as a strategy to meet the US$6 billion debt that it must pay off during 1Q23. The company plans to issue at least $2 billion worth of missions, according to Bloomberg.