Page 6 - LatAmOil Week 02 2023

LatAmOil MEXICO LatAmOil

Pemex still in talks with Finance Ministry

on support for debt payments, CEO says

MEXICO’S national oil company (NOC) Pemex 2022. Under that plan, Mexico City had origi-
is still in discussions with the government on nally pledged in 2021 to make payments on the
options for covering the cost of upcoming pay- state-controlled company’s maturing securities
ments on its securities, CEO Octavio Romero until the end of Lopez Obrador’s term in 2024.
Oropeza told reporters on January 4. To this end, it allocated budget funds to the
Pemex has been in talks with the Finance NOC for 2022 and disbursed its first tranche in
Ministry on renewed state support for payment January 2022.
of debt amortisations since the fourth quarter of However, the NOC stopped receiving fund-
2022 and is still working to evaluate its options, ing under this special programme after the first
Romero stated during a daily press conference quarter of 2022. This was a result of the rise in
at the presidential palace in Mexico City. He did global crude oil prices following the Russian
not say when the parties were likely to reach a invasion of Ukraine, which led many officials
conclusion but noted that high crude oil prices in Mexico City to conclude that the NOC was
might help the NOC find a means of covering its capable of using its own funds – and in particu-
obligations to investors. lar, the extra money earned from crude exports
“We already have several alternative solu- – to cover amortisation payments.
tions,” he said, without elaborating. Pemex’s total debt load stood at around
Pemex is scheduled to pay out $5.5-6.0bn $109.1bn as of the end of 2021 and is now esti-
to holders of its securities in the first quarter of mated to be around $105bn. This makes it the
2023, he added. most indebted oil company in the world.
Mexican President Andres Manuel Lopez Even so, Romero insisted on January 4 that
Obrador, for his part, said at the press confer- the NOC was working to reduce its debts. “We
ence that his government would intervene to are managing that debt hand-in-hand with the
cover the NOC’s obligations if necessary. His federal government and the Finance Ministry,”
statement contradicts a report from Bloomb- he said, without giving any specific figures. ™
erg, which quoted sources with knowledge of
the situation as saying on January 3 that Mexico’s
Finance Ministry was expecting Pemex to pay
its debt amortisations on its own. According to
one of the sources, the government is reluctant
to step in and provide support unless Pemex
does not have the necessary cash by the end of
the first quarter of 2023.
Pemex has been seeking renewed state
support for debt amortisations in line with a
financial support plan that was put in place in Romero (R), in Mexico City on January 4 (Photo: LopezObrador.org.mx)

CURAÇAO
RdK says talks on Isla refinery have stalled

over questions regarding documentation

REFINERIA di Korsou (RdK), Curaçao’s state- prospective investors.
owned refining company, confirmed last week According to a report from Argus Media,
that negotiations on a deal for the operation and RdK has expressed some concerns about the
management of the Isla oil-processing plant credibility of the documentation submitted by
have stalled due to questions about the docu- Caribbean Petroleum Refinery (CPR), a consor-
mentation that has been submitted by some tium of US and Brazilian firms.

P6 www. NEWSBASE .com Week 02 11•January•2023