A Setback for Energy Sovereignty Plans

Due to an export hike, PEMEX increased its sales for the first two months of 2022 by 31 percent compared to the same period in 2021. Nevertheless, the state-owned company is suffering to supply diesel because of a price increase brought on by the Russia-Ukraine conflict. 

Energy Sovereignty Vision on Hold as Oil Exports Rise

Mexico is set to maintain crude exports at approximately 1MMb/d to benefit from the recent rebound in oil prices, which in turn will represent a setback to President Andrés Manuel López Obrador’s plans of reducing crude exports to achieve energy sovereignty by 2023. Minister of Energy Rocío Nahle recently spoke about reevaluating the export reduction. Although a decision has not been made public, it is already causing disagreement.

PEMEX Struggles to Supply Diesel

High diesel prices combined with an increase in fuel demand is causing the NOC’s capacity to supply this diesel to deteriorate. Importers and marketers have begun to suspend diesel imports because of skyrocketing prices caused by the conflict between Russia and Ukraine.

PEMEX Increases Sales

The state-owned company increased its sales by 31 percent as a result of growing crude exports during the first two months of 2022. PEMEX gained US$4.2 billion in the first two months of the year, while it earned US$3.2 billion in the same period of 2021.

PEMEX to Operate Zama Oil Discovery

The offshore oilfield discovered by a consortium led by Talos Energy will be operated by PEMEX. The shallow-water area in Block 7 was awarded to the consortium during the previous administration. Nevertheless, PEMEX made the case that it was the rightful operator of the field under President López Obrador’s administration. Until now, Talos operated 35 percent of Zama; with the new agreement it will maintain a 17.35 percent participation.

Oil Subsidies Will Remain Despite Price Fluctuations

Rogelio Ramirez de la O, Minister of Finance, informed that Mexico will still enjoy a break on fuel taxes. The country will continue to subsidize even if oil prices rise to US$155/b. 

Bidding Irregularities

PEMEX officials detected irregularities in the bidding procedures of Altum Tecnologic and subsequently disqualified the company from its leasing procedure. Four companies delivered near-identical documents to compete with each other for a contract of more than US$2 billion to rent computing equipment and were therefore accused of collusion by the state-owned company.