Mexico’s New Oil Refinery’s Cost Doubles to as Much as $18 Billion
- Flagship Pemex refinery blows its budget ahead of opening
- Dos Bocas project is part of self-sufficiency drive by Pemex
The Petroleos Mexicanos Dos Bocas Refinery under construction in Sept. 2021.
Photographer: Cesar Rodriguez/BloombergThis article is for subscribers only.
A week before the grand opening of Mexican President Andres Manuel Lopez Obrador’s flagship oil refinery project, costs have spiraled out of control to reach as much as $18 billion -- more than double its original price tag.
The value of contracts for construction work through to 2024 signed by Mexico’s energy ministry rose to more than $14 billion in May, and the final amount is likely to be between $16 billion and $18 billion, according to people with knowledge of the matter, who asked not to be identified because they aren’t authorized to speak publicly about the Petroleos Mexicanos project.