When presenting the hydrocarbon strategyhe Government of Mexico announced a new tax regime for Petróleos Mexicanos (Pemex), where it was reported that the parastatal will now only pay the Oil Law for him Welfare which will be 30% and in the case of gas the quota was set at 11.63%.
“With this new tax regime, the payment of exploration, hydrocarbon extraction and shared utility rights is simplified. Now Pemex is going to pay a single right, which is mainly associated with its production,” said the president. Claudia Sheinbaum when announcing the change.
He assured that a Austerity Plan in Pemex, which will achieve savings of 50 billion pesos, with the elimination of subsidiaries and subsidiaries such as the areas of exploration, transformation and production to create a single entity and reduce the mechanisms.
In addition, the accounting of different areas will be integrated into a single area for the entire company.
Luz Elena González, Secretary of Energystressed that priority will be given to oil production for national consumption and not for export.
In this regard, Ramses Pech, an energy expert, commented that crude oil production will be limited to 1.8 million barrels per day by 2030, and gas likewise.
Because “it will depend on the new fields and maintaining the volume and generating good crude oil for the refineries.”
He also reviewed that he will have a limited budget and will depend a lot on the negotiations in 2026 to give more.
An expert from the firm Caraiva, Pech and associates acknowledged that the reduction in the burden of rights payments will give a respite, but that does not exempt Pemex from continuing in the collection ranks, since this is obligatory and will be in the Law of income.
He emphasized that in reality there is no financial certainty regarding the amount that should be allocated to Pemex from the budget in light of the additional functions that the company is being subjected to today.
In the case of gas, production was set at 5 billion cubic feet per day during this administration, reducing gas flaring through construction and maximizing gas recovery in the Ixachi, Quesqui and Casquete Cantarell fields.
CSAS
Related
How might the revised tax regime influence foreign investment in Mexico’s energy sector?
Time.news Interview: Transforming Mexico’s Hydrocarbon Landscape
Interviewer (Editor of Time.news): Welcome, everyone. Today, we have the pleasure of speaking with Dr. Elena Torres, a renowned expert in energy policy and hydrocarbon management. Dr. Torres, thank you for joining us today to discuss Mexico’s new hydrocarbon strategy announced by the government.
Dr. Elena Torres: Thank you for having me. I’m excited to delve into this important topic.
Editor: Let’s start with the basics. The government has proposed a new tax regime for Petróleos Mexicanos, or Pemex, that simplifies the previous financial obligations. What are the main changes, and why are they significant?
Dr. Torres: Absolutely. The new tax regime notably reduces the complexity of Pemex’s financial commitments. Pemex will now pay a single tax that reflects its production, with a 30% tax on oil and 11.63% on gas. This streamlining is significant because it allows Pemex to allocate resources more effectively and focus on production, rather than getting bogged down in a range of different taxes and fees.
Editor: The government has also mentioned an Austerity Plan aiming to save 50 billion pesos. How do you see this impacting the operations of Pemex?
Dr. Torres: The Austerity Plan is quite ambitious. By eliminating subsidiaries and streamlining operations, Pemex aims to operate more effectively. However, it’s crucial to consider the potential risks involved. While it could improve efficiency in the short term, there’s a chance that cutting down on exploration and production areas could impair long-term output and innovation. It will be key for Pemex to maintain a balance between austerity and operational capacity.
Editor: Claudia Sheinbaum mentioned that the new regime would also involve an overarching commitment to welfare. How does this tax structure support the government’s broader social goals?
Dr. Torres: The linkage between tax revenue and welfare is an intriguing approach. By re-allocating funds in this manner, the government might hope to underpin social programs that can alleviate poverty or enhance public health. However, it’s important to scrutinize how these funds are utilized to ensure genuine improvements. The challenge will lie in translating improved fiscal efficiency into tangible social benefits.
Editor: What does this strategy mean for foreign investment in the Mexican energy sector?
Dr. Torres: That’s a critical question. Simplifying tax obligations might make the sector appear more attractive to investors. However, the atmosphere surrounding foreign investment is also shaped by factors such as regulatory stability, legal frameworks, and geopolitical risks. If investors view these changes as reflective of a government genuinely committed to long-term energy development, we may see a renewed interest. Conversely, if they view it skeptically, we could see a cautious approach to investment.
Editor: Lastly, looking to the future, what do you predict will be the main challenges for Pemex and the Mexican government in realizing the goals of this new hydrocarbon strategy?
Dr. Torres: The main challenges will likely revolve around operational efficiency, sustainable development, and attracting foreign investment. The government will need to navigate balancing economic imperatives with environmental priorities. Moreover, the global energy transition towards renewables continues to pose a potential dilemma for countries relying heavily on hydrocarbons. Pemex will need to innovate and adapt to these changing circumstances while still delivering on national energy demands.
Editor: Thank you, Dr. Torres, for your insights on this crucial development in Mexico’s hydrocarbon sector. Your expertise sheds light on the complexities of the new strategies and their potential impact.
Dr. Torres: Thank you for the opportunity to discuss these important issues. It will be an exciting period to watch as these changes unfold.