By 2018, Pemex could reduce its operating expenses by 31% (to MXN$29.2B), according to the Federal Expenditure Budget Project, which if approved, could jeopardize the finances of the NOC’s chain of suppliers.
Pemex metrics continues to fall in terms of production, and there is no solution at least for the short term. In fact, bad news keeps appearing for Pemex, as its main asset Ku-Maloob-Zaap is set to reduce its extraction.
Ku-Maloob-Zaap is Pemex’s main asset of at present, as it is producing more than 800mbd. Pemex plans to make investments and maintenance work to leverage this important block. The company announced a temporary reduction in production in this area.
Pemex continues to reduce its budget to invest in exploration and production, the key activity to increase its metrics. The company reduced the resources destined to exploration, production and industrial transformation.
Pemex’s CEO, Jose Antonio González, talked about the company’s current situation, politics, corruption and what can be done to improve the financial situation of the firm.