Mexico | Pemex’s Business Plan 2019–2023: Marginal but Insufficient Progress

Summary

The permanent reduction of Pemex's tax burden and the possible additional contribution of resources to Pemex beyond 2022, should be supplemented with changes in tax policies that help keep federal government revenues relatively stable and do not risk meeting fiscal targets.

Key points

• Key points:
• The plan includes measures to strengthen Pemex's finances and production capacity, but they do not solve the company's two major structural problems: excessive financial indebtedness and a relatively high tax burden
• We think it is necessary to reactivate farmouts to enable the significant increases in oil production planned for the last three years of AMLO’s government

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