Feb. 28 (Bloomberg) -- Petroleos Mexicanos, the world’s fourth-largest crude producer, plans to borrow as much as $9.8 billion this year, according to a quarterly presentation filed by the state-owned company.
Pemex, as the company is known, will raise between $4 billion and $5 billion of bonds in international markets and between $2 billion and $2.5 billion in Mexico, the oil producer said. The rest of the funding will come from loans from commercial and export banks.
The company, based in Mexico City, is cutting borrowing costs amid speculation that President Enrique Pena Nieto will reduce the company’s tax burden and relax restrictions that are hindering its ability to boost investments and increase output. Finance Minister Luis Videgaray said Jan. 8 that Congress will pass the energy overhaul in the second half of this year.
Pemex, which issued more bonds last year than any other Mexican company, plans to allocate about $6.4 billion of the funds raised this year to pay for other credits. Total indebtedness for the company will increase about $3.3 billion, the presentation shows.
Pemex is increasing capital expenditures this year to a record $25.3 billion as it expands its exploration activities in the deep waters of the Gulf of Mexico. Last year the producer made two ultra-deep water discoveries on the Mexican side of the Perdido, estimating that the area contains as much as 13 billion barrels of oil.
Pemex sees an opportunity to explore about 40 areas in the Mexican side of Perdido, Carlos Morales, the company’s exploration and production chief, said today in a conference call with analysts. Pemex will allocate $3 billion for exploration in 2013, he said.
To contact the reporter on this story: Carlos Manuel Rodriguez in Mexico City at firstname.lastname@example.org
To contact the editor responsible for this story: James Attwood at email@example.com