Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
MEXICO CITY—Mexico is easing the tax burden for Pemex, the state oil company, to free up more cash to boost flagging production, the government says.
Noting the company’s high tax burden, President Andrés Manuel López Obrador told his Jan. 29 morning news conference the move would allow Pemex to have “more to invest” in its operations.
The finance ministry late on Jan. 28 announced a plan to free up some $580 million a year for Pemex by increasing the limit for deducting costs relating to exploration and production projects.
The finance ministry said it would achieve that by bringing deductions into line with the terms of auction rounds held by Mexico from 2015 to 2018. “The finance ministry estimates that this mechanism will free up about 11 billion pesos (US$577 million) for Pemex every year to reach a total of 66 billion available to invest in 2024,” it said. The cash would have to be spent on capex, it added.
The ministry said Pemex would also get a special tax regime for secondary and tertiary recovery—the practice of squeezing more hydrocarbons out of mature fields.
Changes to Pemex’s tax regime were notably absent from the 2019 budget but the ministry said it would fund them by boosting the fight against tax evasion.
Recommended Reading
US Raises Crude Production Growth Forecast for 2024
2024-03-12 - U.S. crude oil production will rise by 260,000 bbl/d to 13.19 MMbbl/d this year, the EIA said in its Short-Term Energy Outlook.
Activity Offshore Norway Expected to Remain Steady in 2024
2024-01-11 - The Norwegian Offshore Directorate provided updates on 2023 activity, including 14 wildcat discoveries and eight projects going online and urging exploration in frontier areas.
ONGC’s M Field Starts Production in Bay of Bengal
2024-01-09 - ONGC’s M Field represents the second phase of the larger 98/2 Block development project which is expected to reach peak production of 45,000 bbl/d and 10 MMcm/d.
E&P Highlights: Jan. 8, 2024
2024-01-08 - Here’s a roundup of the latest E&P headlines including the second biggest deepwater gas find of 2023 and new contract awards.
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-01-12 - The oil and gas rig count, an early indicator of future output, fell by two to 619 in the week to Jan. 12, the lowest since November.