Mexico’s state-owned oil company Pemex is seeking private partners for three major refinery upgrades that will allow it to convert more heavy crude into higher-value fuels like gasoline, a company executive declared on Tuesday November 17th.
Pemex estimates required investment for the construction and installation of coking units at its Salina Cruz, Tula and Salamanca refineries at $12.3 billion.
“We think these projects can be completed by means of partnerships with third parties,” said Juan Marcelo Parizot, Pemex’s head of marketing for its newly-created Industrial Transformation division.
“The goal is to assimilate the best operational and management practices,” he said, adding that partnerships would share risks and rewards as well as lower the amount of capital that Pemex would have to invest upfront.
Like most large oil companies, Pemex has seen its revenues slide dramatically as crude prices plunged by more than half since last year.
The additional three coking plants would allow Mexico, which increasingly produces heavy crude, to generate more valuable fuels like gasoline and diesel, and fewer barrels of less-desirable fuel oil.
Parizot said the projects would eventually increase fuel production by more than a fifth, while improving profit margins by about $6 per barrel of crude oil processed.
He declined to say what kind of partnerships Pemex would employ for the refinery upgrades, or when the projects might be tendered.
Due to lack of sufficient domestic capacity, Mexico currently covers about half of its gasoline needs through imports.
(Reporting for Reuters: David Alire Garcia and Adriana Barrera; Editing by Tom Brown)
more recommended stories
Chetumal, the youngest state capital in Mexico
o the south of the state.
Dolphin Discovery Isla Mujeres “partners” with UN in global event
As part of the environmental education.
Diver reported for damaging the ecosystem in Cozumel reef
Through social networks, a diving service.
New luxury and PR strategy for Grand Hyatt Playa del Carmen
Luxury strategy and public relations agency.
Tulum’s “Art With Me” Festival instantly becomes a world class event (FORBES.com)
Sunbathing on the beach in Tulum,.
Beautiful Costa Mujeres needs to be at the top of your travel bucket list
For many, a Mexican getaway consists.
Despite safety and security concerns, Cancun remains # 1 tourist destination in Latinamerica
Cancun maintained its position as the.
600 new police for Cancun, Playa del Carmen and Tulum Quintana Roo
According to riviera-maya-news.com, approximately 600 new.
Teen jogger who accidentally crossed U.S. border from Canada is detained for two weeks
A teenager out for a beachside.
Grand Finale of the 2018 Merida Initiative National Mock Trial Competition for Mexican Law Students
Mexico City, 21 June, 2018 –.