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LatinNews Daily - 13 March 2020

In brief: Mexico's Pemex gets first oil hedge payment

* Mexico’s state-owned oil firm, Pemex, has announced that it has received the first payment from its oil price hedging programme. In a statement, the firm explained that its hedging programme protects it against the price of Mexican crude falling below US$49 per barrel in which cases it receives compensation. The statement adds that the programme came into effect on 1 February and that the firm has now received a first payment for that month. Pemex is currently the most indebted oil company in the world and the recent sharp fall in international oil prices following the breakdown of an agreement on crude production levels between the Organization of Petroleum Exporting Countries (Opec) and Russia has raised concerns about Pemex’s ability to service its debts. But the Pemex statement said that the hedging programme would help to shore up the firm’s finances, while pointing out that it has access to US$7.85bn in credit lines to ensure that it meets all its financial obligations.

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