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Mexico Real Estate News: Reuters Reports Mexico’s Pemex to Invest $1 Billion to Upgrade Fleet

12 October, 2012

Mexico has been making some serious moves on the world stage recently,and the latest is an announcement from the nation’s state run oil monopoly that it will invest more than $1 billion over the next few years to upgrade its fleet. This is the largest overhaul of the oil company’s ships to happen in decades,according to Reuters.

In a press conference late in September,Pemex Chief Executive Officer Juan Jose Suarez explained to reporters that the company plans to upgrade more than 130 of its vessels as part of a series of planned improvements. 81 of the ships will be part of the Pemex refining division,while 51 will be devoted to the company’s exploration and production divisions.

In addition,Jose Manuel Carrera,a representative from the commercial arm of Pemex,said the company is also studying two ships for its petrochemicals business in Spain,where some of the work is predicted to be carried out. Although some of the new ships may be leased,the company is expected to contract shipbuilders located in Mexico real estate and other locations to build new ships by 2015. 

“What we’re seeing is there isn’t enough capacity now,we’re contracting it out in the rest of the world,depending on the ships,depending on the costs,” Suarez told reporters. “We’re really talking about the next three years,of very ambitious investment plans,the biggest Pemex has made in decades.”

As the world’s current number seven oil producer,Mexico is reliant on revenues from oil to cover at least one third of the nation’s annual federal budget,so this investment and upgrade is crucial to the continued growth of the Mexico’s entire economy. Furthermore,Mexico experienced a reduction in its production capacity between 2004 and 2009 due in large part to aging oil fiends and lagging exploration efforts. However,the country’s renewed focus on oil production in more recent years is already paying off and will continue to do so with the planned upgrades to the fleet.

 

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