PEMEX: PEMEX begins sanitation of finances to rescue energy sovereignty

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Pemex issued the following announcement on Feb. 15.

With the Strengthening Program announced today by the Government of Mexico, Petróleos Mexicanos (Pemex), initiates a sanitation cycle that will allow it to improve its finances, end corruption and, above all, not hire debt and increase investment, highlighted the general director of the company, Octavio Romero Oropeza.

In the presence of the President of Mexico, Andrés Manuel López Obrador, Romero Oropeza, mentioned that, as part of this set of measures, Pemex will have additional revenues of 107 billion pesos, injecting a capitalization of 25 billion pesos and a reduction gradual increase in the fiscal burden of 15 billion pesos a year cumulative up to 90 billion pesos for the sexennium.

Likewise, he said, a monetization of promissory notes for labor liabilities of 35 billion pesos will be obtained, in addition to which revenues are expected for combating fuel theft by more than 32 billion pesos.

In a press conference at the National Palace, Romero Oropeza said that the support provided to Petróleos Mexicanos is generated within a framework of fiscal responsibility, and said that as part of these actions investments will be redirected in areas where oil is easily extracted.

With the Strengthening Program of Petróleos Mexicanos, explained the owner of Pemex, a cycle of reorganization of their finances begins, with which as of this year a process begins that will conclude with a productive and healthy company. "It will have a development like it had not been in many years. In this process, 20 new fields will be developed, of which 16 will be in shallow water and four on land, "he added.

"This great effort that the Government of the Republic is making through the Ministry of Finance, has to be accompanied by a great commitment from the company. There is a very important support that leads us to invest without indebting Pemex. This forces us to be very careful with the exercise of resources, "said Romero Oropeza.

On the other hand, the Pemex corporate finance director, Alberto Velázquez García, informed that, with this fiscal incentive, the company will increase its investment of 204 billion pesos in 2018, to 288 billion pesos this year, that is, almost 36 percent more in real terms.

"Based on this set of measures, the support of the Government of the Republic, financial discipline of the company, control of expenses, and austerity policies, we will no longer contract new debt in 2019; after more than 10 years, Pemex will not hire new debt , "said García Velázquez.

Original source can be found here.



Source: Pemex

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