Petroleos Mexicanos announced plans to raise its combined crude and condensate production to 1.8 million barrels a day over the next six years.
Ana Isabel Martinez, Reuters
MEXICO CITY
EnergiesNet.com 02 13 2025
Mexico, an important supplier of crude oil to U.S. refineries, has received complaints from buyers over the salt and water content of its crude over the past month, the CEO of state energy company Pemex Victor Rodriguez said on Wednesday.
Mexican President Claudia Sheinbaum also acknowledged that some platforms had produced crude with a higher-than-usual salt and water content when asked by a Reuters reporter during her regular morning press conference, but insisted that this was temporary.
“We don’t have problems in Pemex or with oil production, these are situations that occur and have occurred historically,” she said.
Rodriguez, who spoke alongside the president and Energy Minister Luz Elena Gonzalez, said the company was addressing the issue, adding that so far “no shipments have been rejected”.
Bloomberg previously reported that some U.S. refiners are demanding discounts and complaining about the high water content in Mexican crude.
The officials gave no details on how Pemex plans to solve the problem.
Mexico plans to boost its crude oil reserves to ensure it has enough for at least a decade of consumption, a presentation by the officials showed, with 12 strategic Pemex projects accounting for 61% of this hydrocarbon production.
President Sheinbaum derided the energy reform enacted by a previous government that had sought to open up Mexico’s energy market to private investment and expertise, calling it “a failure” that led to falling output.
Heavily indebted Pemex has been struggling to reach a production target of 1.8 million barrels per day.
Under Sheinbaum, Pemex is set to have wider scope to operate jointly with private companies under a bill sent to Congress earlier this month which aims to loosen restrictions implemented by the previous administration.
However, the officials reiterated that Pemex would remain in control of joint projects even where private companies are brought in to provide much-needed capital.
“We won’t call them partners,” Rodriguez said. “They simply help us with capital while Pemex will remain the contract holder.”
Rodriguez added that hydrocarbon products belong to the nation and that revenues were needed to finance social programs.
On refining, the government’s plan is to fully use the capacities of both the Deer Park refinery in Texas and the new Olmeca refinery in the Mexican port of Dos Bocas.
Pemex plans to invest 105 billion pesos ($5.09 billion) to refurbish its refineries. None of its six other refineries are operating at full capacity.
Despite the debt burden, which has risen sharply in recent years, the government does not want the company to return to markets and said the finance ministry would offer support if needed.
($1 = 20.6160 Mexican pesos)
Reporting by Ana Isabel Martinez; Additional reporting by Raul Cortes; Writing by Stefanie Eschenbacher; Editing by Jan Harvey
reuters.com 02 12 2025
