Pemex sends outlook to SEC
Pemex said in a report submitted to the US Securities and Exchange Commission that it does not think the proposed energy reform bill will be able to meet with approval and that it will significantly reduce its investments in the areas of exploration and production beginning this year and until 2011.
In the annual report corresponding to 2007 that Pemex submitted to the SEC this past week, it states that this year it will reach the maximum level of capital destined to exploration and production of hydrocarbons which totals $12 billion.
However, the investment will be reduced in 2009 to $11.7 billion, to $11 billion in 2010 and to $9.9 billion in 2011, said Mexican newspaper Excelsior.
In the report submitted, Pemex said that is was working on nine principal projects that represent a heavy burden on their finances since the Mexican government charges high taxes. In 2007, Pemex paid about 63.2% of their revenues in taxes.
The projects Pemex is currently working on are the Ku-Maloob-Zaap, Cantarell, strategic gas program, Burgos, Antonio J Bermudez, Chicontepec, Chuc, Jujo-Tecominoacan and Caan.
Pemex said in the report that “the political conditions that exist in Mexico would adversely affect the economic politics and consequently, Pemex’s operations,” and its ability to fulfill its future financial obligations.
A few weeks ago, the EIA revealed that Pemex would not begin to recuperate from its dwindling oil production since 2005 until 2025. It also mentioned that the extraction of crude in the country would drop reaching 2.4 million barrels per day in 2020 after reaching its peak three years ago of 3.8 million barrels.