Energy Advisor

Larry B. Pascal and Carlos Alva, partners at Haynes Boone: “Although the commencement of operations of the Olmeca refinery has been postponed on several occasions, and estimated production figures have changed, Pemex issued a statement on Jan. 8 stating that the refinery will start operations in February. Pemex has also announced that the refinery will gradually increase production, producing 65,000 barrels per day (bpd) in February; 128,000 bpd in March and 176,000 bpd in April and thereafter for the year. Due to the upcoming commencement date, one has reason to believe that these production estimates are realistic. The refinery plays an important role in Mexico’s energy security plans because a fundamental purpose is to reduce fuel imports and to strengthen Mexico’s refinery system by adding domestic production capacity. However, the start of operations does not mean that…”