PEMEX Contracts Still Reveal Some Irregularities

Despite the urgent need for the NOC to reduce its emissions, it abandoned its plan to mitigate natural gas flaring. PEMEX is also reaching record numbers of fuel sales for 2022. Moreover, regulatory authorities keep finding irregularities in the NOC’s contracts. 

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PEMEX to Invest US$18 billion to Extract Extra Heavy Crude

PEMEX plans to produce almost 500MMb of extra heavy crude with an API gravity of 8° at the Kayab oil field, featuring a strong investment of US$18.73 billion approved by CNH. The NOC does not have much experience in the extraction of extra heavy crude but aims to bet big on this major project development.

IMF Urges Mexico to Change Fuel Subsidy Strategy

The Executive Board of the International Monetary Fund (IMF) concluded that Mexico is in a good position and that its financial system continues to be resilient even after the pandemic. The board also mentioned the need to reduce gas emissions and the participation of both the private sector and public sectors to achieve this goal. Furthermore, the IMF urged Mexico to change the focus of its tax subsidies for fuels to protect other priorities.

ASF Finds Irregularities in PEMEX Contracts

In its report to the Chamber of Deputies, the Superior Auditor of the Federation (ASF) found some irregularities in the maintenance contracts of three PEMEX-owned refineries. ASF also reported inconsistencies and delays in the maintenance work carried out by PEMEX for the National Refining System (SNR), as well as the payment of surpluses.

PEMEX to Reach Fuel Sales Record Year

The state-owned company is set to have its best year in fuel sales for 2022. From January to September, PEMEX almost reached MX$1 billion, boosted by the higher fuel prices registered during the current year and a recovery in demand.   

PEMEX Abandons Plan to Fix Flaring Problem

After drawing out a plan to avoid fines for burning too much natural gas, PEMEX abandoned the plan five years later. The NOC dropped the plan halfway through its completion despite the environmental costs and regulator fines.  

PEMEX Exports Increase to 1.2MMb/d in September

PEMEX crude production was stable at 1.77MMb/d in September 2022, while it exported 1.2MMb/d. In August, crude exports amounted to 914,665b/d, whereas in September 2021 exports amounted to 983,000b/d. The average price of the Mexican export basket was US$82.36/b, lower than the previous months. Exports to Europe increased by 85 percent to 149,734b/d, while exports to the Middle East increased by 80 percent to 292,008 b/d.