Page 7 - LatAmOil Week 26 2022

LatAmOil MEXICO LatAmOil

Olmeca refinery construction site (Photo: Screenshot from SENER video footage)

Lopez Obrador also told reporters that he The energy minister has explained the
expected the 340,000 barrel per day (bpd) budget increases by referring to the expanding
Olmeca plant to begin turning out gasoline in scope of the project. Specifically, she has men-
2023. Pemex had said originally that it expected tioned Pemex’s decision to ensure the refinery’s
to start production in July 2022. However, many ability to operate independently by constructing
industry experts believe this is unlikely and that a co-generation plant, an aqueduct and a 65-km
the company will not be able to do more than natural gas pipeline, saying that these efforts had
launch token pilot production schemes. driven costs up by $900mn.
Reports of delays and major cost overruns Lopez Obrador, for his part, did not say
have been circulating for some time, and Pemex exactly what had driven the cost of the refinery
itself is said to have drawn up an internal cost up to $11-12bn.
estimate in 2020 that put the final bill for the Pemex is building the Olmeca plant with
project at $12bn. In May of this year, Reuters enthusiastic support from the president, who
reported, citing government documents and aims to ensure that the NOC retains its lead-
sources close to the project, that Pemex might ing role within Mexico’s fuel and energy sec-
have to spend as much as $14.5bn on the project. tor. Lopez Obrador sees the refinery project
This is fully 75% higher than the original esti- as a means of ensuring that 100% Mexican oil
mate of $8bn, and it is nearly 43% higher than production can be refined locally and of mak-
the figure of $9.8bn mentioned by Nahle around ing domestic petroleum product supplies both
the same time. plentiful and cheap. ™

VENEZUEL A
Maduro hails French officials’ call for

lifting curb on Venezuelan oil exports

VENEZUELAN President Nicolas Maduro has Macron: Venezuela is ready to receive all the
responded positively to French government French companies that want to come to produce
officials’ call for allowing his country, along with gas and petrol for the European market, for the
Iran, to resume crude oil exports to the world global market,” he remarked. “You are welcome
market. to come whenever. The road is paved. We are
In an address broadcast by the state televi- prepared, ready and happy to do it.”
sion channel on June 27, Maduro said that Ven- The president did not say whether the
ezuela was not only ready to start supplying oil national oil company (NOC) PdVSA had
again but would also welcome investment from received proposals from any French investors.
French firms. TotalEnergies, France’s largest oil operator,
“I would tell [French] President [Emmanuel] exited Venezuela in June 2021.

Week 26 30•June•2022 www. NEWSBASE .com P7