Pemex puts refinery upgrades on hold in $4.1 billion cuts program

The government has given no clear detail of how the cuts will be made, to what extent they will affect different projects and to what extent they will affect jobs and salaries.
The government has given no clear detail of how the cuts will be made, to what extent they will affect different projects and to what extent they will affect jobs and salaries.

Platts

Faced with the need to cut $4.1 billion from this year’s budget because of falling oil prices, Mexican state oil company Pemex said Monday it would delay plans for refinery upgrades to maintain spending on maintaining crude and natural gas production.

Pemex also said contractors would be asked to renegotiate the terms of their current deals.

“Many of the contracts were signed at a time when market conditions were very different,” the statement said.

To soften the impact of the cuts, Pemex said its management has presented several initiatives to give the private sector a bigger role in the company’s investment projects in accordance with the terms of last year’s energy reform.

http://www.platts.com/latest-news/oil/mexicocity/mexicos-pemex-puts-refinery-updates-on-hold-in-26015118

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