MEXICO CITY--Mexico's government on Tuesday said it aimed to cease funding Pemex by 2027 when the highly-indebted state energy company should become financially self-sufficient, helped by a series of measures to bring down debt and stabilize production.
Mexican President Claudia Sheinbaum, flanked by her energy and finance ministers and the chief executive of Pemex, told a press conference that by 2027, Pemex "will no longer need the finance ministry's support."
Pemex reported last week a financial debt of around $99 billion and a debt to providers of around $23 billion, which is down from earlier years but still has investors worried. In recent years, Pemex has received what the government has often called unprecedented support, mostly in the form of capital injections, refinancing of debt, tax reductions and credit lines.
Later in the day, the government presented a ten-year plan in which it laid out steps on how to achieve its goals to make Pemex financially self-sufficient.In it, the government said that 21 so-called mixed contracts could help lift declining production by as much as 450,000 barrels per day (bpd). At the same time, it would refine more at home and therefore reduce crude oil exports to 393,100 bpd in 2035, from 487,900 bpd in 2026.
The target for local crude oil processing, including at the new Olmeca refinery in the port of Dos Bocas, is 1.3 million barrels per day. This would help wean the country off gasoline and diesel imports.
Officials reiterated the government's ambition to pay down debt - both maturing bond debt and what the company owes to providers. To achieve all this, a new government-backed investment vehicle will seek to raise up to 250 billion Mexican pesos ($13 billion) for Pemex projects in 2025 alone.
It follows a $12 billion debt offering to ease Pemex's short-term financial pressures and support debt refinancing, announced last week. This year, $5.1 billion of bond debt is due for repayment, followed by $18.7 billion for next year, and $7.7 billion for the year after.
Finance Minister Edgar Amador said that through a capitalization and financing strategy currently underway, Pemex's financial debt should close this year at $88.8 billion and at $77.3 billion by 2030.
Pemex Chief Executive Victor Rodriguez also outlined several additional initiatives, including for the development of the Zama and Trion fields and returning to other fields with potential to lift production.In addition, Pemex intends to build three new pipelines.
