PW
Español

 

PW
Guyana
Surinam


PW
Trinidad

& Tobago
Caribbean

 

Prices
Graphics

 




Very usefull links



PW
Bookstore





Blogspots

The Global Barrel

Tiempo Culural

Gustavo Coronel

Iran Watch.org

Le Blog des
Energies Nouvelles

News Links

AP

AFP

Aljazeera

Dow Jones

Reuters

Bloomberg

Views and News
from
Norway

 

PW
Bookstore

 

 

 

AMLO assign $32 billion to lift
Pemex dwindling oil output

Pemex's crude oil production from 2004 to 2020 (in 1,000 barrels per day)

Source: Statista 2021

- Exploration and production investment up 26% to $18 billions
-
Proposed 2022 budget is 17% higher than this year’s plan

By Amy Stillman / Bloomberg

MEXICO CITY
Petroleumworld 09 10 2021

Mexico President Andres Manuel Lopez Obrador is raising Petroleos Mexicanos’s spending plan for next year to about $32 billion in a bid to boost flagging oil production.

The funds allocated for the state producer in a 2022 budget proposal, including operational spending, represent a 17% increase from this year. Of the total, about $18 billion will be earmarked for exploration and production investment, a 26% jump.

The generous budget reflects the president’s goal to revitalize Pemex after more than a decade of consecutive output declines and make the country self-sufficient in energy. The spending increase contrasts with widespread belt-tightening in the global oil industry as the pandemic continues to cloud the demand outlook and major economies increasingly focus on boosting renewable energy to fight climate change.

Pemex has been investing in onshore and shallow water fields, which has enabled it to boost production of an ultra light oil known as condensate. Yet, output of its main grades, such as Mexico’s flagship heavy crude Maya, continues to shrink as productivity at big offshore fields dwindles. The problem has been exacerbated by two recent offshore platform accidents that disrupted a quarter of Pemex’s crude output.

The Finance Ministry expects Pemex’s oil production, including condensate, to reach 1.826 million barrels a day in 2022, up 4.2% from this year.

In addition to a higher budget, the government has reduced Pemex’s profit-sharing duty to 40% next year, from 54% in 2021. It has also begun a process of refinancing Pemex’s debt, after the nation received a transfer of about $12 billion from the International Monetary Fund. Some observers are skeptical about whether the financial aid will be enough to move the needle on Pemex’s debt of $115 billion, the highest of any oil company

The president plans to build a new refinery in his home state and refurbish the run-down existing ones, while increasing crude production to feed the plants. But the Dos Bocas flagship refinery project has gone over budget, and critics complain that it’s siphoning away resources from Pemex’s main job of drilling.

Pemex has said that it aims to end 2021 with a daily average production of 1.8 million barrels a day, up from an average of 1.685 million barrels a day with partners in the first seven months of the year.
_____________

By Amy Stillman from Bloomberg

bloomberg.com / 09 09 2021

TOP

Contact: editor@petroleumworld.com,


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

CopyRight © 1999-2021, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2021, 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.