The Mexican Oil Fund (FMP), responsible for managing funds generated from hydrocarbon exploration and extraction, experienced a continued decrease in financial contributions from private operators in October. Meanwhile, PEMEX made significant payments for the Shared Profit Right (DUC), representing the second-highest amount in 2023.
PEMEX transferred MX$45.219 billion (US$2.62 billion) as Shared Profit Right (DUC) to the FMP in October, representing the second-highest payment this year, surpassed only by the almost MX$53.353 billion paid in July.
Cumulatively, PEMEX's DUC, Hydrocarbon Exploration Rights, and Hydrocarbon Extraction Rights payments amounted to MX$56.96 billion in October, reflecting a 7.4% decrease compared to the same month last year when the contribution stood at MX$60.632 billion.
In 2022, PEMEX made DUC payments of MX$432.238 billion. However, in the current year, the NOC has contributed MX$211.231 billion for the same concept. Both license and production-sharing contracts from private operating companies added MX$2.563 billion in October to the FMP. This figure represents the minimum contribution for the year and is 26.9% lower than the previous month. The peak in revenue from private operators came in May, reaching MX$4.84 billion. Throughout the year, there has been a consistent decline in revenue from the private sector.
FMP's income has been variable, with several months witnessing limited transfers from PEMEX. In January, April, August, and September, transfers did not surpass MX$4.6 billion, significantly below the Ministry of Finance and Public Credit's (SHCP) schedule.
PEMEX’s DUC contribution has been highlighted as a key tool to help the company alleviate its strained finances. The Chamber of Deputies recently approved the 2024 Federal Revenue Law, introducing various adjustments including a reduction of PEMEX’s tax burden. The Ministry of Finance originally proposed a reduction of PEMEX’s DUC tax to 35% in the 2024 Revenue Law. However, the DUC was further reduced to 30% during the discussion. In 2022, PEMEX received a tax incentive that lowered the DUC rate to 40%, which was maintained in the 2023 Revenue Law.
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