During the morning press conference held by the President of Mexico, Andrés Manuel López Obrador, the CEO of Petróleos Mexicanos (PEMEX), Octavio Romero Oropeza, described the operational, financial and administrative progress of the institution for the 2019-2024 period, as part of the strategy to achieve energy self-sufficiency.
Romero Oropeza explained that the proven reserves (1P) have been stabilized and increased by 7.5 billion barrels of crude oil equivalent (MMbpce). Additionally, 51 new fields have been added to the national production within five and a half years, compared to the previous six-year term, when there were only eight. He also explained that hydrocarbon production is being boosted for the next administration, by incorporating eight new fields with a reserve of 451 MMbpce.
During this period, the production target of liquid hydrocarbons to satisfy the National Refining System (SNR) was met, reaching 1,855 thousand barrels per day (Mbd). In 2024, PEMEX will contribute 97% of the domestic oil and 98% of domestic gas production.
Regarding production from new fields, PEMEX has achieved an incremental production of 562 Mbd within 5.5 years, while private companies have only reached 59 Mbd. PEMEX has achieved a production 9 times higher than the entire output obtained through 103 contracts with private companies under the Energy Reform.
The PEMEX CEO pointed out that, with the start-up of the Olmeca Refinery, crude oil processing is expected to reach 1,452 Mbd in 2024, compared to the 511 Mbd processed in 2018.
In terms of oil production, we have gone from a production of 304 Mbd in 2018 to 1,228 Mbd in 2024, including the SNR and Deer Park. The above translates into a reduction in imports from 927 Mbd in 2018 to 85 Mbd by the end of this year. It should be noted that PEMEX increased its investment in rehabilitation projects for the SNR by 12 billion pesos per year, compared to 8.5 billion pesos per year during the previous six-year term.
On the other hand, to reduce fuel oil production and convert it into higher value products (gasoline and diesel), this administration began the construction of two coking plants: Tula and Salina Cruz. The Tula Coker will increase domestic production by 80,000 barrels of gasoline and diesel and will begin operations in July of 2024, while the Salina Cruz Coker will produce 74,000 barrels of gasoline and diesel and by September 2024 will be at 54% completion.
In terms of fertilizer production, the second ammonia plant and the second urea plant will begin production in May, thus doubling fertilizer production and guaranteeing that the Mexican Government's fertilizer delivery program will be 100% supplied with PEMEX fertilizers.
Romero Oropeza pointed out that the financial results are still favorable, due to a sound operating performance, time and resource optimization, and the cost reductions and savings generated throughout the operating, administrative and commercial chain, which have led to a reduction of the debt balance by US$30 billion during this period.
He also stated that PEMEX has received 952 billion pesos from the Federal Government, of which 561 billion pesos were earmarked for debt payment and 391 billion pesos for infrastructure. Pemex simultaneously contributed 4 billion pesos in taxes and duties. Therefore, its net contribution amounts to 3 billion pesos.
The CEO acknowledged the President's support for gradually reducing PEMEX's tax burden, lowering the DUC rate from 65% in 2019 to 30% in 2024, which gives the institution financial viability.
PEMEX's payment to suppliers shows an increasing rate with respect to the average for January-March, going from 39.2 billion pesos to 70 billion pesos, which will be settled in May 2024.
Another favorable aspect for the Mexican oil company in the period from 2021-2024 is the evolution of internal sales participation in PEMEX's total income, the percentage of which rose by almost 10 points, from 66.1 to 75.5. This factor contributes to the financial solidity of the institution, together with the recovery of sales in the internal market in categories such as gasoline, diesel, jet fuel and LP gas.
Regarding human capital, and following the President's instructions, the CEO reported that 27,357 workers have been given permanent employment, with an additional 2,643 temporary workers projected to be hired this year, to reach a total of 30,000 over the 2019-2024 period. Furthermore, 80,728 promotions have been granted and 20,234 workers have retired, with no increase in spending on personnel services.
These facts and figures show that PEMEX remains firmly established as an institution that drives and promotes the well-being of society as a whole.