One Year of Deer Park’s Mexican Operations
According to Octavio Romero Oropeza, CEO, PEMEX, the purchase of Deer Park in Texas has yielded solid results. “The profits at the end of the year are estimated to reach US$1 billion. This implies that PEMEX not only recovered its investment in less than a year but also obtained a profit of US$400 million,” reported Romero.
The addition of the refinery has also helped to increase national refining production. “When we started [the administration], only 600Mb/d were processed. We rehabilitated and invested in our refineries and went from 600Mb/d to 800Mb/d. However, if we consider the production of Deer Park, which PEMEX already owns, we are close to 1.1MMb/d,” Oropeza said.
On the back of these results, PEMEX announced that it plans to replicate the model in the National Refining System (SNR). “Contrary to what has been said about how PEMEX’s operation of Deer Park would make the refinery lose value, the results show the opposite: not only did we maintain efficiency, we also increased the number of barrels processed and the gasoline production,” he added.
PEMEX aims to produce 244Mb/d of fuel by 2023, of which 118Mb/d are gasoline, 99Mb/d diesel and 27Mb/d jet fuel. The company aims to increase refined fuel production to 262Mb/d in 2024 and maintain crude oil processing capacity of 298Mb/d.
"The success of the business model has resulted in an exchange of information with workers from the six refineries comprising the National Refining System (SNR), including the planning and execution of maintenance tasks carried out in these facilities, all with the objective of replicating best practices in each,” commented Jorge Basaldúa Ramos, Central Director, PEMEX Industrial Transformation.
According to Guy Hackwell, General Manager, Deer Park, the refinery reported one of t most profitable years in its history. These economic results were driven by the spike in oil and fuel prices on the back of the Russian war in Ukraine.