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Mexican president says Pemex support should aid exploration, output - Metro US

Mexican president says Pemex support should aid exploration, output

FILE PHOTO: A general view shows Mexican state oil firm Pemex's Cadereyta refinery

MEXICO CITY (Reuters) – Mexican national oil company Petroleos Mexicanos (Pemex) will receive new funding for its exploration and production business as part of a broader financial support plan, President Andres Manuel Lopez Obrador said on Thursday.

Alongside a recently announced tax break, Lopez Obrador said Pemex would get support of around 100 billion pesos ($4.80 billion).

Reuters earlier this month reported the government would offer a tax break of 75 billion pesos ($3.60 billion) and inject around $1.3 billion-$1.6 billion into Pemex. Last week, Mexico granted new fiscal support to Pemex worth 73.28 billion pesos.

Lopez Obrador did not specify the value of the cash injection.

“It will get help so it doesn’t lack funds for work on exploration and production at oil fields,” he told a regular government news conference.

On Wednesday, credit ratings agency Moody’s Investors Service estimated that Pemex would need $14.7 billion in government support this year.

($1 = 20.8420 Mexican pesos)

(Reporting by Anthony Esposito and Raul Cortes; Editing by Leslie Adler)

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