ANNOUNCEMENT 20 Jan 2022

In January 2022, Petróleos Mexicanos (Pemex) announced receiving a loan from the government to acquire a US-located refinery. 

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Petróleos Mexicanos, PEMEX. Press release. "Concreta PEMEX adquisición de la refinería Deer Park en EE.UU". 20/01/2022. Available at: https://www.pemex.com/saladeprensa/boletines_nacionales/Paginas/2022-006_nacional.aspx

Gobierno de México, Fideicomiso Fondo Nacional de Infraestructura (FONADIN). Government of Mexico, National Infrastructure Fund Trust (FONADIN). Acerca del FONADIN. Available at: https://www.fonadin.gob.mx/fni2/acerca-del-fonadin/

Gobierno de México, Presidencia de la República. Government of Mexico, Presidency of the Republic. Press release. "El pueblo de México ya es dueño de la refinería Deer Park, anuncia presidente López Obrador". 20/01/2022. Available at: https://www.gob.mx/presidencia/prensa/el-pueblo-de-mexico-ya-es-dueno-de-la-refineria-deer-park-anuncia-presidente-lopez-obrador?idiom=es

Inception date: 20 Jan 2022 | Removal date: open ended

Financial assistance in foreign market

On 20 January 2022, state-owned Petróleos Mexicanos (Pemex) announced receiving a USD 596 million loan from the government of Mexico to finance the acquisition of the Deer Park refinery from the American Shell Oil Company. The loan was granted under the National Infrastructure Fund Trust (FONADIN in Spanish), managed by the Secretary of Finance and Public Credit of Mexico. 

With the loan, Pemex acquired 50.005% of Shell's shareholding of the Deer Park refinery located in Houston, Texas. According to the press release, Pemex already held 49.995% of the refinery based on a 1993 transaction. With the transaction, Pemex becomes the only owner of the refinery, which has a crude oil processing capacity of 340 thousand barrels per day.

In this context, Mexico's President, Andrés López Obrador, noted: "This advances the purpose that we can process the crude oil that is produced in Mexico and convert it into gasoline to stop importing. In other words, the purpose to have energy self-sufficiency" (own translation). 

FONADIN was established in 2008 to provide investment aid related to infrastructure in the communications, transport, hydraulics, environment and tourism sectors. 

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