Pemex in debt: end of Mexico's oil gilded age


By Melissa Lesh

15 April 2014 at 08:58 BST


76-year-old Mexican oil company Pemex is powerful, but its $100 million debt led Mexican president Enrique Pena Nieto to enact energy reform that would open the company to partnerships with foreign and private investors.

Mexican oil company Pemex is powerful, but its $100 million debt led Mexican president Enrique Pena Nieto to enact energy reform Gerardo Borbolla

Such a reform would break up the Mexican oil monopoly, and whilst most Mexicans oppose the reform, Congress already approved the bill.  With most of Mexico’s oil reserves out of Pemex’s physical and financial reach - offshore in the Gulf of Mexico - outside help is necessary.  Pemex head of investor relations Rolando Galiando said: ‘Mexico has a lot of potential with regard to hydrocarbons.  But these more complex reservoirs have higher costs and technology requirements…and it was getting very complicated for Pemex to do all of this alone.’   Pemex estimates if the reforms succeed, they could make $10 billion in new investment in the next decade.  Source: IB Times

 
   
 
 
 

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