MEXICO CITY, March 17 (Reuters) - Five people died

outside Mexico's Olmeca oil refinery after "oily waters" around

the perimeter caught fire, state-run oil firm Pemex said on

Tuesday, the latest incident at the flagship project of former

President Andres Manuel Lopez Obrador.

One of those who died was a Pemex worker, the company said.

Pemex said it is working with authorities to determine the

cause and that operations were unaffected.

"Due to heavy rains that caused oily water to overflow

outside the Olmeca refinery, the liquid pooled and subsequently

ignited outside the facility's perimeter fence," Pemex said in a

statement.

Olmeca is in the southern state of Tabasco in the Gulf port

of Dos Bocas. It is among Mexico's largest refineries and began

operations in 2024.

The refinery was built to reduce Mexico's dependence on

imported fuel. It was inaugurated in 2022 during the term of

President Lopez Obrador, the predecessor and political mentor of

current President Claudia Sheinbaum.

The $21 billion project, more than double the original

budget, has experienced a series of operating problems

including stoppages, and has failed to meet the production

targets promised upon inauguration.

In January, the refinery produced 205,000 barrels per day

(bpd) of crude oil, 77,520 bpd of gasoline and 78,500 bpd of

diesel. Its maximum processing capacity is 340,000 bpd which the

Lopez Obrador administration said would mean "energy

sovereignty".