PEMEX’s Rescue Goes Not as Planned
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PEMEX’s Rescue Goes Not as Planned

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Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Thu, 01/19/2023 - 08:30

While the pandemic placed a rocky road ahead for oil in Mexico, this administration’s attempt to rescue PEMEX has yielded some positive results. Nevertheless, the NOC’s production and refining figures are still below the original projections. Furthermore, although Mexico’s oil investments have reached 27% of CNH’s approved amount, this is still 55% less than what was expected for the period between 2015 and 2022.

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Oil Investments Reach 27% of the Approved Amount

CNH has approved investment plans worth US$46.61 billion to be done over a period of 10 years, from 2015 to 2025. Currently, 27% of the total amount approved has been invested. This represents only approximately 45% of the approved investment for the period between 2015 and 2022. According to CNH, the reduction in investments has to do with the downward adjustments of company investments.

PEMEX Increases Refining But Annual Average Remains Below Target

PEMEX’s refining increased by 15% in November 2022 compared to October. The government’s target for 2022 production was 1.2MMb/d. In November, the average stood at 814.52Mb/d, which falls 31% short of the goal. Additionally, despite the recent increase in refining, the use of the installed refining capacity is at one of its lowest points since 2012.

Supreme Court Reiterates Suspension of SENER’s Gas Supply Decree

As part of SENER’s Supply Guarantee strategy for the optimization of capacity in the Integrated National Natural Gas Transportation and Storage System (SISTRANGAS), it drafted rules to force private companies that use SISTRANGAS to acquire gas exclusively from PEMEX and CFE. After the Federal Economic Competition Commission (COFECE) presented a constitutional controversy challenge for unfair competition, the SCJN overruled the SENER instructions. After an appeal was presented, the SCJN’s first chamber voted in favor of the original overrule.

Woodside Energy, Government of Tamaulipas Sign Agreement

Woodside Energy signed a collaboration agreement with the government of Tamaulipas in Matamoros to formalize developments at the Matamoros port on the back of the Trion project development. According to the Governor of Tamaulipas, José Silva, this project will single-handedly revive the northern port of Matamoros.

PEMEX to Start Zama’s Development in 2024

PEMEX reported its 2023-2027 Business Plan to CNH which includes operations at the Zama field that will start in 2024. The Zama field is one of PEMEX’s Top Five priority projects for its 2023-2037 investments. The NOC is currently working with its partners, Premier Oil, owned by Harbour Energy, and Sierra Oil, owned by Wintershall Dea, on the field’s development plan, which is set to be presented to CNH in 1Q23. 

Mexico’s Fuel Imports Decreased in November

In November 2022, PEMEX imported 303.40Mb of gasoline, 25.71% less than in October of that year. Similarly, diesel imports decreased by 14%, as imports dropped from 171Mb in October to 147Mb in November. The rehabilitation of the National Refining System (SNR) has so far cost the administration MX$45 billion (US$2.39 billion). Accordingly, the income coming from oil exports decreased by 3.2% from September to October 2022, as the figure dropped from US$2.52 billion to US$2.44 billion.

Photo by:   photocreo

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