Pemex Gets a $7.4 Billion Boost, But Half Is for AMLO’s Refinery
- State-owned company posts its five-year business plan online
- No drilling funds after 2020, but tax breaks for added output
A Pemex refinery in Salina Cruz, Mexico.
Photographer: Susana Gonzalez/Bloomberg
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Mexico President Andres Manuel Lopez Obrador is planning a $7.4 billion cash injection for Petroleos Mexicanos over the next three years. But there’s a catch: More than half will go to his pet refinery project.
Pemex will get a $3.5 billion capital boost in 2020, with an undefined amount for exploration and production. But in the two years after that, its E&P unit won’t get a single peso from the government. By then, the company should have a “financial balance surplus” to be used for investment, according to a five-year business plan published online.