Mexico’s state-oil company Pemex has requested almost $6.5 billion in additional funding from the government to pay for works at the ‘Dos Bocas’ refinery in 2022, according to sources.
The additional funding is reported to be to cover work not initially included in the project’s proposal, as well as higher construction and start-up costs.
Mexican president, Andrés Manuel López Obrador, considers the new refinery a signature project and has argued it will help the country cut its longstanding dependence on gasoline and diesel imports.
The additional funding would reportedly take the refinery’s price tag to $14.6 bn, far above the original budget of $8.9 bn.
The document cites higher costs for building “associated” components in infrastructure needed to operate the refinery as the main reason for the increase.
Petroleos Mexicanos’ (Pemex) board approved – by a majority, but not unanimous, vote – to request $5.6 bn from the government to continue the works, as well as $853m for costs associated with the start-up of the Olmeca refinery, commonly known as Dos Bocas after the area where it is being constructed.
Pemex will own and operate the refinery, which is Mexico’s eighth such facility.
Pemex, as well as Mexico’s finance ministry and energy ministry, did not immediately respond to a request for comment.
Up until June, $10.3 bn had been spent on the refinery, reports said.
In April, sources close to the project told Reuters the refinery would cost at least $14 bn, while other reports have put the final price tag several billion dollars higher.
Mr López Obrador said in June that the refinery would end up costing significantly more than the $8.9 bn that had been approved initially. At the time he estimated a price tag of $11 bn and $12 bn.
For more information visit www.pemex.com
