Pemex CEO: Buyers of Mexican crude oil complain about salt and water content
The CEO of the state energy company Pemex, Victor Rodriguez, said that buyers have complained about the water and salt content in Mexico's crude oil over the last month.
When asked by a journalist during her morning press conference if some platforms produced crude oil with higher than usual salt and water contents, Mexican President Claudia Sheinbaum acknowledged this but said that it was only temporary.
She said, "We do not have problems with Pemex or oil production. These are situations that have happened historically."
Rodriguez, who spoke with Energy Minister Luz E. Gonzalez and the President, said that the company is addressing the problem, adding that "so far, no shipments have rejected".
Bloomberg reported previously that some U.S. refining companies are demanding discounts, and complaining about the water content of Mexican crude.
Officials did not provide any details about how Pemex intends to resolve the problem.
Mexico will increase its crude oil reserves in order to have enough to last at least 10 years, according to a presentation made by officials. Twelve strategic Pemex project accounts for 61%.
Sheinbaum criticized the energy reform implemented by a former government, which sought to open Mexico's market for private investment and expertise. He called it "a failure", which led to a fall in output.
Pemex, a heavily indebted company, has struggled to meet its production goal of 1.8million barrels per day.
Sheinbaum will have more freedom to work with private companies in accordance with a bill that was sent to Congress this month. The bill aims to ease restrictions imposed by the previous administration.
Officials reiterated, however, that Pemex will remain in charge of joint projects, even when private companies are brought into the project to provide much needed capital.
Rodriguez stated, "We will not call them partners." "They will help us with capital, but Pemex remains the contract holder."
Rodriguez said that hydrocarbons belong to the country and that revenue is needed to finance social programmes.
The government plans to use all the capacity of the Deer Park Refinery in Texas as well as the new Olmeca Refinery in Dos Bocas, Mexico.
Pemex will invest 105 billion Pesos (5,09 billion dollars) in the refurbishment of its refineries. Pemex's six other refineries do not operate at full capacity.
The government has said that it does not want to see the company return to the market despite the fact that its debts have risen dramatically in recent years. It also stated the Finance Ministry would provide support, if necessary.
(source: Reuters)
