Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Last Call for Cyber Monday! Save Now on Claim 60% OFF
Mexico's Pemex requests $6.5 billion more funding for 'Dos Bocas' refinery -documents, source
Published Aug 12, 2022 03:44PM ET
Updated Aug 12, 2022 04:31PM ET
© Reuters. FILE PHOTO: A sign of state-owned company Petroleos Mexicanos (PEMEX) is seen at a gas station in Monterrey, Mexico June 17, 2019. REUTERS/Daniel Becerril
By Adriana Barrera and Ana Isabel Martinez
MEXICO CITY (Reuters) -Mexico's state-oil company Pemex requested this week almost $6.5 billion in additional funding from the government to pay for works at the 'Dos Bocas' refinery this year, according to a document and two sources familiar with the matter.
The additional funding is to cover works not initially included in the project's proposal, higher construction and startup costs, according to the document and sources.
Mexican President Andres Manuel Lopez Obrador considers the new refinery a signature project and has argued it will help the country cut a longstanding dependence on gasoline and diesel imports.
The additional funding would take the refinery's price tag to $14.6 billion, the documents and the sources said, far above the original budget of $8.9 billion.
The document, seen by Reuters, cites higher costs for building "associated" components in infrastructure needed to operate the refinery as the main reason for the increase.
Petroleos Mexicanos' (Pemex) board approved - by a majority but not unanimous vote - to request $5.6 billion from the government to continue the works, as well as $853 million for costs associated with the start-up of the Olmeca refinery, commonly known as Dos Bocas after the area where it is being built.
Pemex will own and operate the refinery, Mexico's eighth.
Pemex, Mexico's finance ministry and energy ministry did not immediately respond for a request for comment.
Up until June, $10.3 billion had been spent on the refinery, the document showed.
In April, sources close to the project told Reuters the refinery would cost at least $14 billion while other reports have put the final price tag several billion dollars higher.
Lopez Obrador said in June the refinery would end up costing significantly more than the $8.9 billion that had been approved initially. At the time he estimated a price tag of $11 billion and $12 billion.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.