Page 8 - LatAmOil Week 08 2023

LatAmOil MEXICO LatAmOil

Pemex reportedly looking to pay

down debts with its own funds

MEXICO’S national oil company (NOC) approach, declining oil prices saw Pemex renew
Pemex is looking to pay off its debts using its its talks with the treasury as it sought renewed
own funds instead of turning to investors, two financial support. The company’s management
sources familiar with the matter confirmed. team maintains that this support is necessary.
“For now, the plan is to use Pemex’s own cash Even though Pemex has received $45bn in cap-
and not carry out any more debt refinancing italisation, direct transfers, tax exemptions and
operations in the markets, provided oil prices other contributions, it has been unable to lower
remain high,” one of the confidential sources its debt levels, primarily due to a surge in debt
told Reuters last week. With a debt of $105bn, triggered by its use of new debts to pay off old
Pemex is currently the world’s most indebted oil obligations.
company. In January 2023, Pemex made payments
In the event that the company does not have on eight coupons for different bond issues that
sufficient funding to pay off its own debt, it will came due, in addition to $1.1bn in payments
turn to the government and not to investors for the remainder of a coupon payment due
for support, the source explained. “President to holders of a different bond issued in 2013.
Andres Manuel Lopez Obrador has always said Meanwhile, the company is due to make at least
that if necessary ... more support will be given,” 13 more coupon payments in February. ™
the source stated. “If oil prices drop a lot, well
below budgeted, then perhaps direct injections
would have to be sought to pay off the debt.”
Mexico’s Finance Ministry and Pemex have
been in discussions for some time on the sub-
ject of which party would assume responsibility
for the oil major’s massive debt. President Lopez
Obrador’s administration committed itself in
2021 to assisting Pemex with its debt payments.
After world crude oil prices surged following
Russia’s invasion of Ukraine last year, though,
the Finance Ministry suggested that the NOC
use its profits, which amounted to $9.6bn in the
first nine months of 2022, to pay off debts.
While the company set out to follow this Pemex is the most indebted oil company in the world (Photo: Twitter/@Pemex)

VENEZUELA
Chevron to deliver eight cargoes of

Venezuelan crude oil to US this month

US major Chevron is on track to send eight car- shipment to the same destinations before the
goes of Venezuelan crude oil to the US in Febru- end of the month, it said.
ary, with delivery volumes averaging more than Reuters did not identify these destinations
100,000 barrels per day (bpd), according to a by name. According to previous reports, the US
report from Reuters. major has been sending most of its Venezuelan
The news agency noted on February 16, cit- oil to its refinery in Pascagoula, Mississippi. It
ing shipping data and documents, that Chevron has also been saying since mid-January, though,
had already loaded and shipped three cargoes that it will deliver Venezuelan feedstock to
of Venezuelan crude to US ports. Five addi- oil-processing plants and terminals owned by
tional tankers are waiting to be filled with oil for other firms in the US Gulf Coast (USGC) region.

P8 www. NEWSBASE .com Week 08 22•February•2023