Pemex presents its Business Plan 2019-2023
The company lays the foundations for its modernization, making it more competitive and guaranteeing its long-term financial viability.
The plan consolidates Pemex as an engine of national development and guarantor of energy sovereignty.
The high tax burden imposed on the company, its debt and low investment, have been the main problems that have trapped the company in a vicious circle.
Production is expected to increase to levels of 2,697 thousand barrels per day in the last year of this administration.
The Business Plan was unanimously approved by the Board of Directors.
In the presence of the president of Mexico, Andrés Manuel López Obrador, the chief executive officer of Petróleos Mexicanos, Octavio Romero Oropeza, presented Pemex’s Business Plan for the years 2019-2023. It was unanimously approved by the Board of Directors and lays the foundations for the modernization of the company, making it more competitive and guaranteeing its long-term financial viability. This consolidates Pemex as an engine of national development and guarantor of energy sovereignty.
During the morning conference at the National Palace, the president of Mexico, Andrés Manuel López Obrador, supported the plan and stated that it is a rescue of the country’s energy industry, after the resounding failure of the Energy Reform. He reiterated the support of the Government of Mexico for Petróleos Mexicanos, stating a gradual reduction of its fiscal burden, in such a way that it alleviates the necessary resources to invest in new projects in order to increase oil production.
The head of Pemex emphasized that the plan establishes the measures to face the main structural problems facing the company: the high tax burden, its debt and low investment, all of which are difficulties that trapped the company in a vicious circle.
Mr. Romero Oropeza said that the strategy and measures adopted through the Business Plan, the company will achieve a balanced budget in 2021 and is expected to increase production to levels of 2 million 697 thousand barrels a day in the last year of the present administration.
In the document, he expressed that “Pemex makes clear its openness to business schemes with the private sector, under strict observance of the company’s interests, and with fair and transparent agreements, leaving behind the practices in which Pemex participated at a disadvantage”.
This Business Plan, said the CEO of Pemex, demonstrates a different management model based on innovation, efficiency and, above all, without corruption, is possible.
He assured that, with the support of the Government of Mexico, Pemex will have relief in its tax burden, which will allow it to free resources to trigger investment projects in oil production. It should be noted that, as a first measure, for 2019, the fiscal benefit in the payment of oil production rights was extended through the publication of a decree that resulted in a benefit of around 30 billion pesos for this year.
Source / More : Pemex
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