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Mexico to simplify fiscal regime for state oil firm Pemex
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Mexico to simplify fiscal regime for state oil firm Pemex
Nov 13, 2024 7:25 AM

MEXICO CITY, Nov 13 (Reuters) - Mexico announced on

Wednesday a plan to simplify its fiscal regime for state oil

firm Petroleos Mexicanos, known as Pemex, in effort to

boost the producer whose heavy debts have weighed on state

coffers.

Mexican President Claudia Sheinbaum said in the regular

morning press conference that Pemex would pay a general duty of

30% and 11.63% on its more costly non-associated gas operations,

saying the move was aimed at "transparency" and giving the oil

company more room for investment.

During the presentation, state officials laid out plans for

Pemex to increase its 3P reserves, hit a target of 5,000 cubic

meters of natural gas per day during Sheinbaum's six-year term,

maintain its hydrocarbon production at 1.8 million barrels per

day, and increase its oil storage capacity.

New Pemex chief Victor Rodriguez said the company would

push an austerity drive that seeks to slash some 50 billion

pesos ($2.44 billion) in costs.

He added that Pemex would continue to work to pay down its

debts and that he did not expect the company would have to

resort to international debt markets to shore up its financing.

Despite government efforts to reduce debt, Pemex carries

financial debt of about $100 billion and provider debt of about

$20 billion.

Credit agencies have warned that government

budget allocations for Pemex

are an important factor they look at when assessing the

country's credit rating.

($1 = 20.5337 Mexican pesos)

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