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Buyers of Mexican crude complain of salt and water content, Pemex CEO says
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Buyers of Mexican crude complain of salt and water content, Pemex CEO says
Feb 12, 2025 11:18 AM

MEXICO CITY, Feb 12 (Reuters) - Mexico, an important

supplier of crude oil to U.S. refineries, has received

complaints from buyers over the salt and water content of its

crude over the past month, the CEO of state energy company Pemex

Victor Rodriguez said on Wednesday.

Mexican President Claudia Sheinbaum also acknowledged that

some platforms had produced crude with a higher-than-usual salt

and water content when asked by a Reuters reporter during her

regular morning press conference, but insisted that this was

temporary.

"We don't have problems in Pemex or with oil production,

these are situations that occur and have occurred historically,"

she said.

Rodriguez, who spoke alongside the president and Energy

Minister Luz Elena Gonzalez, said the company was addressing the

issue, adding that so far "no shipments have been rejected".

Bloomberg previously reported that some U.S. refiners are

demanding discounts and complaining about the high water content

in Mexican crude.

The officials gave no details on how Pemex plans to solve

the problem.

Mexico plans to boost its crude oil reserves to ensure it

has enough for at least a decade of consumption, a presentation

by the officials showed, with 12 strategic Pemex projects

accounting for 61% of this hydrocarbon production.

President Sheinbaum derided the energy reform enacted by a

previous government that had sought to open up Mexico's energy

market to private investment and expertise, calling it "a

failure" that led to falling output.

Heavily indebted Pemex has been struggling to reach a

production target of 1.8 million barrels per day.

Under Sheinbaum, Pemex is set to have wider scope to operate

jointly with private companies under a bill sent to Congress

earlier this month which aims to loosen restrictions implemented

by the previous administration.

However, the officials reiterated that Pemex would remain in

control of joint projects even where private companies are

brought in to provide much-needed capital.

"We won't call them partners," Rodriguez said. "They simply

help us with capital while Pemex will remain the contract

holder."

Rodriguez added that hydrocarbon products belong to the

nation and that revenues were needed to finance social programs.

On refining, the government's plan is to fully use the

capacities of both the Deer Park refinery in Texas and the new

Olmeca refinery in the Mexican port of Dos Bocas.

Pemex plans to invest 105 billion pesos ($5.09 billion) to

refurbish its refineries. None of its six other refineries are

operating at full capacity.

Despite the debt burden, which has risen sharply in recent

years, the government does not want the company to return to

markets and said the finance ministry would offer support if

needed.

($1 = 20.6160 Mexican pesos)

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