Mexican state oil company Petróleos Mexicanos (Pemex) offered to buy Shell’s stake in the Deer Park refinery, which is currently in partnership between the two companies, for $600mn. The acquisition includes cash, debt, and hydrocarbon inventories worth $250-350mn as per Forbes. Mexico’s President Andrés Manuel López Obrador (AMLO) stated that the transaction will serve to make the country self-sufficient in fuel. AMLO added, “In essence, we received 6 refineries in poor condition, we are modernizing them, the Tula coker is already being restarted to expand the refining opacity at that plant and two more refineries, we received six and we are going to deliver eight”. Pemex said, “This acquisition will be fully financed by the federal government and the purchase-sale operation is scheduled to close in the last quarter of the year, subject to the approval of the regulatory authorities of the United States Government”.

Pemex’s USD bonds were stable. Its 3.827% 2022s traded at 101.92, yielding 1.41% and its 6.95% 2060s at 87.62, yielding 7.99%.

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