Pemex‘s capital investment, in net terms, in the modified budget for 2023 is Ps. 278.8 billion.

The company expects to allocate Ps. 239.9 billion (86.1%) to exploration and production programs, and Ps. 29.9 billion (10.7%) to its industrial transformation segment.

As part of the context, the weighted average export price of Mexican crude oil for 2022 was 89.35 dollars per barrel.

Based on its estimate that the weighted average export price of Mexican crude oil would be US$68.70 per barrel, the Mexican Congress approved a budget for 2023 of Ps. 678.4 billion, including operating expenses, with the objective of reaching a zero financial balance.

Management expects that Pemex will be able to maintain its medium- and long-term growth plans without incurring debt beyond the amount included in its approved financing program for 2023 of Ps. 30 billion, as its balance sheet projections consider additional actions, such as the implementation of optimization measures and increased investments in projects that the company expects will contribute to the generation of higher revenues.

Capital Investment

According to Pemex, this company’s budget was based on the following guiding principles:

• Maintain the industrial safety and reliability of its facilities.
• Consolidate the stabilization of crude oil and gas production levels, increase those production levels by the end of the year and sustain growth in the medium and long term.
• Increase crude oil processing capacity in the National Refining System.
• Comply with labor and financial obligations.

On January 31, 2023, Pemex’s Board of Directors authorized a modification to the company’s original budget for 2023, which considers a total investment budget of 446.8 billion pesos for capital expenditures.

Thus, the modified budget for 2023 includes 161.9 billion pesos for non-capitalizable maintenance and 6.1 billion pesos for financial investment, of which 2.1 billion pesos correspond to capital contributions to its subsidiary PTI Infraestructura de Desarrollo, S.A. de C.V. for the construction of the Olmeca refinery located in Dos Bocas, Paraíso, Tabasco, and 4 billion pesos correspond to capital contributions to its fertilizer business line.