Mexico Simplifies Pemex Fiscal Regime to Boost Oil Production

Mexico announced plans to simplify the fiscal regime for its state oil firm, Pemex, to alleviate its debt burdens. The initiative aims to increase transparency and investment capacity, while Pemex focuses on boosting 3P reserves, natural gas production, and oil storage, amid an ambitious austerity drive.

Mexico has unveiled plans to overhaul the fiscal structure for its state oil company, Petroleos Mexicanos (Pemex), as part of a strategy to relieve heavy debt burdens that have strained state finances.

President Claudia Sheinbaum, during a morning press conference, stated that Pemex would be subjected to a general duty of 30% and an 11.63% charge on its costlier non-associated gas operations. This measure is intended to enhance transparency and increase the company's capacity for future investments.

Victor Rodriguez, the newly appointed head of Pemex, highlighted the commencement of an austerity initiative poised to cut 50 billion pesos in expenses. The company also aims to augment its 3P reserves, maintain hydrocarbon production, and expand oil storage, focusing on debt repayment without needing to tap into international debt markets.

(With inputs from agencies.)