MOSCOW (MRC) -- A debt refinancing operation for Mexican national oil company Pemex that swapped the highly-indebted firm's short-term bonds for a new 10-year bond has been completed, said Reuters, citing the finance ministry.
In a statement, the ministry said the near-term debt management scheme lowers Pemex's overall debt load by USD3.2 B, while reducing "financial pressure" on the company between 2024 and 2030 by USD10.5 B.
The joint operation between the finance ministry and Pemex benefited from a USD3.5 B infusion from the federal government, the statement added, and will result in an annual USD180 MM reduction in the state-owned Pemex's financing costs.
The reduction stems from lowering the gap between the interest rate Pemex pays to service its debt and the government's sovereign debt by 50 basis points, according to the statement. Pemex, one of the world's most indebted oil companies, has struggled with 17-years of declining crude production and in 2020 lost its coveted investment-grade rating.
Halfway through his six-year term, President Andres Manuel Lopez Obrador has sought to boost the company's operations and finances while simultaneously canceling oil auctions open to private producers as well as tenders to pick joint venture partners for Pemex, a common tool used to share risks and rewards in the international industry.
Lopez Obrador, a leftist who favors a state-controlled energy industry, also seeks to end Pemex's crude exports in the next few years and instead refine the oil at home in a bid to make Mexico more energy independent.
As per MRC, Mexico's attorney general has requested a prison sentence of up to 39 years for the former chief executive of state oil company Petroleos Mexicanos (Pemex) for his role in a corruption scandal. Emilio Lozoya is accused of having requested money from scandal-plagued Brazilian construction conglomerate Odebrecht to partially finance the presidential campaign of former President, Enrique Pena Nieto in exchange for contracts.
As MRC informed before, Pemex Petroquimica, a subsidiary of the Mexican state oil company Pemex, has resumed production of high-density polyethylene (LDPE) on line 2 in Cangrejera, Mexico after an unscheduled renovation. Earlier it was noted that Pemex postponed the restart of the second line with a capacity of 200,000 tonnes per year for the production of LDPE until August 10. It was originally planned that the launch of this production will begin at the end of July. The line was closed on 10 July.
Petroleos Mexicanos (Pemex) is a Mexican state-owned oil and gas and petrochemical company. Since the nationalization of the Mexican oil industry in 1938, Pemex has remained a state-owned company and, by law, has exclusive rights to explore and produce oil in the country. Almost 60% of the company's revenues go to the state budget. Petrochemical products include, but are not limited to, polyethylene, polyvinyl chloride.