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López Obrador announces no more privatization, 750 billion-peso injection into Pemex

Mexico City, Mexico — President Andrés Manuel López Obrador announced a 75-billion-peso injection along with major changes into Mexico’s oil policy including no more privatization.

López Obrador affirmed that Mexico’s oil policy will be changed to achieve better results, saying that they are analyzing a way to carry out integrated contracts that facilitate the extraction of oil, both on land and in shallow waters.

When presenting the National Refining Plan, the president explained that resources will be allocated for that purpose “and what will be used for additional public investment will not come from debt, we will not even use the petroleum contingency to fund.”

He says that instead, oil activity will be financed by the Republican austerity plan and the investment in Petróleos Mexicanos will be increased by 75 billion peso for the following year.

“We are calling on workers, businessmen to help us rescue the oil industry and we have had a very good response,” commented López Obrador.

He pointed out that one of the goals for 2024 will be to achieve a production of 2.4 million barrels of oil and the production of the fuels needed by Mexicans to supply domestic consumption adding that despite the fact the country has crude oil, “we are buying 75 percent of the gasoline we consume. We only produce 25 percent.

“We are moving toward self-sufficiency, to add value to the raw material.” He explained that the former will not be easy because of the backlog, the need for resources, “but we are going there. I made the commitment that in three years we would have self-sufficiency in gasoline and I will not change that goal, so that I can also lower the price of fuel.”

The president stressed that in the face of the complex situation facing the country, what is urgently needed is the rescue of the oil sector which has been affected by the lack of drilling of wells and public investment.

The general director of Petróleos Mexicanos (Pemex), Octavio Romero Oropeza, considered the decision of the president to be successful in rehabilitating the six refineries that are currently in the country and promoting the construction of the Dos Bocas in Tabasco.

He said it was decided to build the new refinery on this site because it is the most important terminal in the country.

“It is not a political issue, it is technical. There was no better place than Dos Bocas, Paraíso, Tabasco, to build this new refinery,” that, he adds, will begin tender in March.

He also noted that there will be “No more privatizations or dismantling of the facilities, nor displacement of the activities of the workers of the energy sector of our country.”

Romero Oropeza says that “With the rehabilitation and maintenance program of the national refining system, which includes the six refineries that we currently have, and also the new project of the new Dos Boscas refinery, this objective will undoubtedly be achieved.”