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Economy & Business - June 2021

MEXICO: Concerns over cost and potential success of refinery purchase

The Mexican government disclosed on 24 May that state-owned oil company, Pemex, had completed the purchase for US$596m of the Deer Park oil refinery, located in Houston, Texas. Pemex stated that the decision to acquire Deer Park, which refines 340,000 barrels of crude per day, is part of its business strategy for Pemex to produce enough refined petrol fuels to cover Mexico’s national demand. Mexico’s finance ministry (SHCP) also said that the purchase was a strategic decision that guarantees the supply of petrol in case of emergencies, such as the hacking that US oil firm, Colonial Oil, suffered that affected its gas distribution operations. In such cases, the totality of Deer Park’s production would be sent to Mexico.

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