Page 4 - LatAmOil Week 43 2021

COMMENTARY Y
LatAmOil COMMENTAR LatAmOil

Pemex’s CEO (L) and Mexico’s president (R) making a joint appearance in 2018 (Image: Pemex)
Mexico City may assume

Pemex’s $115bn debt portfolio

The government reportedly intends to assume responsibility for the NOC’s debt amortisations

MEXICAN President Andres Manuel Lopez we can no longer issue bonds,” he said. “Due to
Obrador has made his sentiments about Pemex that, Pemex won’t be the one in charge of debt
WHAT: clear. amortisations, but it will be the federal govern-
Pemex’s CEO said his On many occasions since his election in ment. This is a huge support that will be given
company can no longer 2018, he has championed the national oil com- to this great company because it will prevent it
issue bonds to raise pany (NOC). He has declared that his govern- from going further into debt.”
money for payment of ment will do everything it can to ensure that
debts. Pemex remains the dominant player in Mexico’s Short-term financial gains
oil and gas industry, and he has indicated that he Romero’s announcement was unexpected and
WHY: wants and expects state-owned energy firms to may have even been a little premature.
Assuming responsibil- serve as engines of economic growth. As Bloomberg noted, the Pemex CEO did
ity for the NOC’s debts
imposes a consider- Now, though, he appears to have gone a step not go into much detail about the purported
able burden upon the further. According to Pemex’s CEO Octavio debt rescue plan, and Mexico’s Finance Minis-
government. Romero Oropeza, Lopez Obrador has instructed try was not able to provide reporters with any
Mexico’s government to assume responsibility confirmation or comments on the matter on
WHAT NEXT: for the NOC’s debts. October 27. Likewise, Lopez Obrador had not
AMLO may prefer to According to a report from Bloomberg, made any public statements on the matter as of
direct the funds freed up Romero made a statement to this effect on press time.
for investment into pet October 27 during an address to members of But even though Mexican officials have not
projects such as the Dos Parliament. shed much light on their plans, the news appears
Bocas refinery. “The president has given us instruction that to have thrilled holders of Pemex’s securities.

P4 www. NEWSBASE .com Week 43 28•October•2021