Pemex plans sharp drop in crude exports next year as it ramps up refining


  • Energy
  • Wednesday, 29 Dec 2021

Pemex Chief Executive Officer Octavio Romero projected that its crude exports would fall to 435,000 barrels per day (bpd) in 2022 from 1.019 million this year as Mexico incorporates operations at its the Deer Park refinery in Texas into its forward planning.(File pic shows the Pemex logo on an oil refinery in Mexico)

MEXICO CITY: Mexico's Petroleos Mexicanos (Pemex) said on Tuesday it would drastically reduce planned crude exports next year as the state oil company works to meet the government's target of refining all of its oil domestically.

Pemex Chief Executive Officer Octavio Romero projected that its crude exports would fall to 435,000 barrels per day (bpd) in 2022 from 1.019 million this year as Mexico incorporates operations at its the Deer Park refinery in Texas into its forward planning.

Pemex this year moved to acquire the controlling interest held by Royal Dutch Shell, its partner in Deer Park, and the government expects the deal to be completed next month.

Pemex in a presentation at a news conference forecast that from 2023 crude exports would end as Mexico refined all of its oil, in keeping with President Andres Manuel Lopez Obrador's plan to make the country self-sufficient in gasoline.

"For 2023 and 2024, practically all Pemex's production will be refined because the Dos Bocas refinery will begin operating," Romero said, referring to the new facility being built in Lopez Obrador's home state of Tabasco, due to be completed next year.

Mexico for years relied significantly on Pemex revenues to fund part of the federal budget.

That dependence has been gradually lowered as the economy diversified in recent years, but the 2022 budget plan approved by Congress in November still foresees Mexico exporting 979,000 bpd of crude, more than double Romero's new target.

"If that (979,000 figure) is not met, there's going to be a serious problem for public finances," said Juan Carlos Romero Hicks, a senior lawmaker for the center-right opposition National Action Party (PAN).

The finance ministry did not reply to a request for comment.- Reuters

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