México

Guyana

Trinidad
& Tobago

 




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

 

How Pemex became the most indebted oil company in the world

Susana Gonzalez /Bloomberg

The government-owned energy company has spent money on non-core business units and inefficient drilling projects.

- Mexico's oil output has declined every year since a 2004 peak
- Investment cuts over the years have hurt business operations

By Amy Stillman / Bloomberg

MEXICO CITY
Petroleumworld 02 26 2019

After more than a decade of declining production, wasteful spending and a higher tax burden than any other driller in Latin America, it's little wonder Mexico's Petroleos Mexicanos is the world's most indebted oil company.

Pemex's oil output has plunged by almost half since a 2004 peak, and its proven reserves are just a quarter of what they were almost two decades ago. Yet rather than prioritizing oilfield maintenance and new discoveries, the government-owned energy company has spent money on non-core business units and inefficient drilling projects.

Its six refineries operate at about one-third of their capacity and lose more money with each extra barrel of crude they process, despite upgrade projects that began in the early 2000s. The $12 billion Tula Bicentenario refinery was scrapped five years after it was announced, and now the new government wants to spend $8 billion on another one in Dos Bocas.

Pemex lost more than a billion dollars on decrepit fertilizer plants it purchased in 2014 and 2016 and squandered millions of dollars on a now-defunct electricity generation unit it created in 2015, Mexico's Federal Audit Office said in a February report .

The company has sought to reduce spending over the years to shore up its finances. Yet the austerity measures, while helping to slow the acceleration of its debt, did little to prevent the pile from creeping higher -- to a whopping $107 billion. It's also guaranteed that output would continue to dwindle as field maintenance and the development of new wells were suspended, and the revamp of its aging refineries delayed.

To make matters worse, Pemex has long been the government's cash cow, accounting for about 20 percent of the annual federal budget. In the past two decades, 95 percent of Pemex's pretax profits went to the government, which is higher than even PDVSA in Venezuela, according to Capital Economics.

Original article

 

_________________________



We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

_________________________

Story by Amy Stillman / Bloomberg from Bloomberg.


bloomberg.com 02 26 2019

_________________________

We invite all our readers to share with us
their views and comments about this article.

 

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95, '98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld   / Elio Ohep - All rights reserved

 

 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.