{"id":3881,"date":"2021-05-24T11:37:09","date_gmt":"2021-05-24T17:37:09","guid":{"rendered":"http:\/\/accesstomexico.mx\/blog\/?p=3881"},"modified":"2021-05-27T11:41:12","modified_gmt":"2021-05-27T17:41:12","slug":"pemex-invests-us-600-million-in-texas-oil-refinery","status":"publish","type":"post","link":"https:\/\/accesstomexico.mx\/blog\/pemex-invests-us-600-million-in-texas-oil-refinery\/","title":{"rendered":"Pemex invests US $600 million in Texas oil refinery."},"content":{"rendered":"\n
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MEXICO NEWS DAILY<\/a><\/p>\n\n\n\n

Mexico\u2019s heavily indebted state oil company has reached a deal to buy Shell Oil Company\u2019s 50% share in the jointly-owned Deer Park oil refinery near Houston, Texas, for US $600 million, President L\u00f3pez Obrador announced Monday.<\/p>\n\n\n\n

Pemex, which has some $100 billion in debt, \u201cbought 50% of the shares because the other 50% were already owned by Pemex,\u201d he said in a video message posted to social media.<\/p>\n\n\n\n

\u201cIn this way, we now have a new refinery. This refinery in Houston has the capacity to process 340,000 barrels [of crude] per day. \u2026 It\u2019s the same [capacity] as the new refinery at Dos Bocas [on the Tabasco coast] that we\u2019re building \u2026\u201d L\u00f3pez Obrador said.<\/p>\n\n\n\n

\u201cIn essence, we received six refineries in a poor state \u2013 we\u2019re modernizing them, \u2026 and we\u2019re going to deliver eight refineries [to the next government]. In this way, we\u2019re going to stop buying fuel abroad, \u2026 we\u2019re going to be self-sufficient by 2023.\u201d<\/p>\n\n\n\n

The president, who sees oil production as crucial to both Mexico\u2019s sovereignty and its economic future, stressed that Pemex\u2019s purchase of Shell\u2019s share of the Houston refinery \u2013 a joint venture since 1993 \u2013 will not be made with funds supplied via a loan but with savings generated by the government\u2019s austerity drive and elimination of corruption.<\/p>\n\n\n\n

The acquisition comes at a time when many countries are attempting to reduce their reliance on fossil fuels. But L\u00f3pez Obrador has made their use a cornerstone of his energy plan and has moved to make it more difficult for private, renewable companies to participate in the Mexican market.<\/p>\n\n\n\n

Mexico expert Duncan Wood said on Twitter that the decision to buy Shell\u2019s interest in the refinery \u201cis not a bad idea per se\u201d before adding: \u201cbut let\u2019s see how Pemex runs the place without Shell.\u201d<\/p>\n\n\n\n

\u201cWhile some oil companies seek to shed unprofitable assets, Pemex looks to accumulate. It\u2019s an unusual investment approach. Pemex is buying an aging asset that produces a commodity for which time is running out,\u201d wrote Wood, former director of the Wilson Center\u2019s Mexico Institute and now the center\u2019s vice president for strategy and new initiatives.<\/p>\n\n\n\n

\u201cA key question arises: will the Biden administration raise environmental regulations for refining, to reach climate and energy transition goals? And how expensive will that be for Pemex? Of course there is the possibility that pursuing lower emissions at Deer Park will teach Pemex how to do a better job at its refineries in Mexico \u2026 we can always dream.\u201d<\/p>\n\n\n\n

Huibert Vigeveno, Shell\u2019s downstream director, said the company had not been planning to sell its interest in the refinery but \u201cfollowing an unsolicited offer from Pemex, we have reached an agreement to transfer our interest in the partnership to them.\u201d<\/p>\n\n\n\n

\u201cPemex has been our strong and active partner at the Deer Park Refinery for nearly 30 years, and we will continue to work with them in an integrated way, including through our on-site chemicals facility, which Shell will retain,\u201d he said.<\/p>\n\n\n\n

Shell said in a statement that \u201cthe consideration for this transaction is $596 million which is a combination of cash and debt, plus the value of hydrocarbon inventory.\u201d<\/p>\n\n\n\n

Shell and Pemex both said they expect the transaction to be completed in the final quarter of 2021.<\/p>\n\n\n\n

L\u00f3pez Obrador complained recently that the Texas refinery \u2013 which processes a significant amount of Mexican crude \u2013 has not provided any benefits to Mexico in the almost 30 years since Pemex invested in it, apparently because most profits were reinvested.<\/p>\n\n\n\n

The Associated Press said that $600 million for half a refinery looks like a good deal for Mexico but added that it raises questions about the government\u2019s $9 billion outlay to build a similar refinery on the Tabasco coast. That investment is 7.5 times higher than the apparent $1.2 billion value of the Deer Park facility.<\/p>\n\n\n\n

Construction of the Dos Bocas refinery, criticized by many energy analysts on the grounds that it diverts resources from Pemex\u2019s more profitable exploration business, is expected to be completed by the middle of next year.<\/p>\n\n\n\n

Mexico News Daily Staff. (2021). Pemex invests US $600 million in Texas oil refinery. M\u00e9xico.\u00a0Mexico News Daily<\/em>. Recuperado de\u00a0<\/strong>https:\/\/mexiconewsdaily.com\/news\/pemex-invests-us-600-million-in-texas-oil-refinery\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

MEXICO NEWS DAILY Mexico\u2019s heavily indebted state oil company has reached a deal to buy Shell Oil Company\u2019s 50% share in the jointly-owned Deer Park oil refinery near Houston, Texas, for US $600 million, President L\u00f3pez Obrador announced Monday. Pemex, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3881","post","type-post","status-publish","format-standard","hentry","category-uncategorized","clearfix"],"_links":{"self":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/comments?post=3881"}],"version-history":[{"count":1,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3881\/revisions"}],"predecessor-version":[{"id":3883,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3881\/revisions\/3883"}],"wp:attachment":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/media?parent=3881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/categories?post=3881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/tags?post=3881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}