Pemex moves to reassure financial markets

Thursday, November 17, 2016

The CEO of Mexico's state oil firm Pemex and the country's finance minister have met with foreign investors, analysts and credit rating agencies to send a message of confidence in the company and the country.

Mexico's economy has been buffeted by the fall in oil prices, a slowdown in global economic growth, market volatility and uncertainty caused by the US presidential election, which has raised questions about the future of Mexico-US relarions, including cooperation in the energy sector, as well as a sharp currency depreciation.

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Pemex CEO José Antonio González Anaya and finance minister José Antonio Meade Kuribreña said during the meeting that the country's oil sector will continue to be an engine of economic growth, with Pemex as the fundamental protagonist, according to a press release issued jointly by the company and the ministry.

González Anaya said that Pemex's five-year business plan presented earlier this month defines the actions, challenges and opportunities facing each of the company's lines of business, and is based on seeking profitability, using the tools provided by the energy reform.

He said the plan was well received by the financial markets and the global oil industry, but that the big challenge now is to accelerate its implementation and adjust the company's cost structure to achieve a surplus in 2017 and to balance the NOC's books within three or four years.

The CEO said Pemex's efforts are focused on creating farm-outs in deep and shallow water and onshore fields, as well as processing and logistics. The result of the first farm-out for the deepwater Trión block will be announced on December 5.

Mexico will maintain its fiscal discipline and macroeconomic consistency, redouble efforts in the implementation of structural reform and augment measures to consolidate the rule of law, Meade Kuribreña said.

Representatives of Fitch, Standard & Poors and Moody's were present at the meeting, according to the release.