PEMEX’s Tax Contributions Decrease

Despite the government's efforts to strengthen state-owned companies, PEMEX still has several serious issues to solve before it can become continuingly profitable. President López Obrador stated that the government would support the company if needed. However, despite the fact that the NOC paid out its own debt last year, its financial achievements appear futile in light of the financial support provided by the government.

Moreover, as the private sector pushes to open up the market, ASEA hints at a fracking law for the next administration if the extraction method legalizes.

Ready for more? Here is the Week in Oil and Gas! 

PEMEX’s Tax Contributions Undermined by Public Financial Support

According to the Mexican Oil Fund (FMP), PEMEX’s contribution to its shared utility right (DUC) fell by 34 percent in December 2022. On the other hand, private contracts’ contributions increased by 4.8 percent over the same period. Nevertheless, according to the  Center for Research in Public Policy (IMCO), from January to September 2022, PEMEX received federal support of MX$809.8 billion (US$42.45 billion) for capital contributions, tax incentives and other assistance.

ASEA Hints at Fracking Law for the Next Administration

Mexico’s Safety, Energy and Environmental Agency (ASEA) confirmed that it is working on a legal norm for companies to use fracking if the next administration legalizes this extraction method. The regulation will focus mostly on the reuse of the water injected in the plays to avoid wasting the resource. Although president Andrés Manuel López Obrador promised in 2018 that he would prohibit fracking during his administration due to water scarcity, Mexico already produces 190Mb/d from this method,

PEMEX Gears Up to Increase Gas Capture to 98 Percent in 2024

President López Obrador gave some insight on PEMEX’s intentions to increase gas capture in 2024. The company will invest US$3.78 billion to increase the share of natural gas it captures instead of needing to flare it to 98 percent. The NOC plans to achieve its plans by acquiring financial support from international bodies focused on development. The president said that PEMEX CEO Octavio Romero Oropeza will further explain these plans.

PEMEX Supplies 52 Percent of Domestic Fertilizer Sales

PEMEX aimed to close 2022 with a total delivery of 839,000 tons of fertilizers to agricultural producers. PEMEX CEO Octavio Romero Oropeza pointed out that with the current production at the new plants and imports, the NOC will be able to produce 839,000 tons for 2022, all of which can be sold to a demanding national market. For 2023, PEMEX committed to supplying 1.4 million tons, which would imply covering 87 percent of the national demand. Nonetheless, from this volume, 300,000 tons will be imported by the NOC. 

Government to Support PEMEX’s Debt If Needed

Due to high oil prices and an increase in crude oil production, PEMEX was able to pay off parts of its massive debt by itself at the beginning of 2022. The finance ministry expects PEMEX to continue carrying out its own payments unless it needs support during 1Q23. Nevertheless, President Andrés Manuel López Obrador declared that the government would help the NOC to pay its debt if needed, as the company was still in "recovery.” 

Fugro Aims to Help Save the World’s Oceans Using Geodata

Fugro, the world's leading geodata specialist, has become a global benchmark within the private sector for its environmental efforts. Fugro is partnering with the Intergovernmental Oceanographic Commission of the United Nations Educational, Scientific and Cultural Organization (IOC-UNESCO) to actively support the Ocean Decade. Under this partnership Fugro is helping to lead two key working groups: the Data Coordination Group is focused on the development and implementation of an Ocean Decade Data Strategy to improve the way global ocean science data is accessed and shared, and the Corporate Data Group is focused on creating frameworks and mechanism to unlock privately owned ocean data for the benefit of humanity.