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Shell To Sell Interest In Deer Park Refinery To Partner Pemex


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https://www.prnewswire.com/news-releases/shell-to-sell-interest-in-deer-park-refinery-to-partner-pemex-301297863.html

 

"THE HAGUE, Netherlands, May 24, 2021 /PRNewswire/ -- Shell Oil Company, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its interest in Deer Park Refining Limited Partnership, a 50-50 joint venture between Shell Oil Company and P.M.I. Norteamerica, S.A. De C.V. (a subsidiary of Petroleos Mexicanos, or Pemex). The transaction will transfer Shell's interest in the partnership, and therefore full ownership of the refinery, to Pemex, subject to regulatory approvals."

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Possibly considered political .. if so I am sorry. 

There will be more international companies pulling out of Mexica. AMLO has rolled back as many as possible of previous administrations laws that allowed  some competition and international technology in the energy sector.  There are many lawsuits by international companies who stand to loose billions of dollars on investments in their electricty and petroleum projects in Mexico. Mexico is aready in violation of T-MEC agreement between Canada-USA-Mexico because of AMLO's edicts.   

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The article just notes Shell received an unsolicited offer.  Could be it was a good deal for them.

Truthfully, given all the problems of corruption and union featherbedding that Pemex has, Shell may have decided they didn't want to be in business with them.

Mexicans will continue to be faced with high energy costs, that appears certain.  This has certainly incentivized us to reduce energy consumption and I estimate we use about 20 percent of what we used when we lived in New Mexico.

Solar panels, driving a lot less, instant hot water, LED lighting, more efficient electrical wherever possible, all have really paid off for us.  Even with the higher costs we spend far less for electricity, gas and gasoline than we did NOB.

Great for us but for the lost economic opportunity from high energy costs maybe not so great for working Mexican families.

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As an update on this, the financial press seems to think Mexico made a great buy here.  Some are also raising questions as to why the refinery being built in Mexico by the government is costing $7 billion U.S. when this refinery of similar size Mexico just bought out has an indicated value of $1.1 billion.

Good question I think.

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45 minutes ago, Mainecoons said:

As an update on this, the financial press seems to think Mexico made a great buy here.  Some are also raising questions as to why the refinery being built in Mexico by the government is costing $7 billion U.S. when this refinery of similar size Mexico just bought out has an indicated value of $1.1 billion.

Good question I think.

Mexico admitted Dos Bocas refinery will cost $9.5 billion dollars to build recently not the $7 billion but international companies who build them still say it will cost about $16 to $17 billion to build and take about 7 to 8 years not the 4 years Mexico says. 

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2 minutes ago, AlanMexicali said:

Mexico admitted Dos Bocas refinery will cost $9.5 billion dollars to build recently not the $7 billion but international companies who build them still say it will cost about $16 to $17 billion to build and take about 7 to 8 years not the 4 years Mexico says. 

Even more amazing.

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35 minutes ago, Mainecoons said:

Even more amazing.

Also noted one of the largest construction companies in Mexico did not bid on Dos Bocas, the Train Maya, and the trans carib-pacific railroad projects. When asked why thay said they did not believe any of them would be able to be completed during AMLO's term. The inference was that the contract would not be completed and paid. 

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3 hours ago, Mainecoons said:

Even more amazing.

All public funds used to build the Dos Bocas refinery, the Mayan Train and Santa Lucia airport are not open to the public because the federal government classified those records a national security risk if they were. Nobody can access the public spending on these projects and are not open to bids except some parts of the train, as specified by the anti-corruption laws. 

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Actually the costs and contracts of all three are available. The stories are in the newspapers all the time. 

Train Maya The sections being built by the army might be hard to quantify, but their contracts for purchase of materials is public as well. As well as the bids for the train cars.

Just one example.

The National Tourism Fund (Fonatur) announced that the consortium, also made up of Acciona Infraestructuras México, Acción Construcción and México Proyectos y Desarrollos, will build the fifth section of the project, for which a budget of 17,815 million 613 thousand is contemplated. 759 pesos and 93 cents, VAT included.

Dos Bocas . One example

 This project is financed in a special investment item for Pemex in the Budget, which for this year has authorized 41 billion pesos, last year it was 49 billion pesos.

Santa Lucia airport info is public as well, although because the army is building it some of the costs might be in the military budget 

one example

For 2021 to continue with the construction of the International Airport in Santa Lucia, the federal government would allocate 21 thousand 315 million pesos , an increase of 296.7 percent compared to the budget for the previous year.

 

 

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  • 2 weeks later...
1 hour ago, AlanMexicali said:

The Deer Park refinery price now to buy the other 50 percent is $863 million dollars; has gone up $263 million dollars.

https://www.eluniversal.com.mx/cartera/refineria-deer-park-sale-263-mdd-mas-cara-analisis

 

i would bet that this was known a long time ago. Pemex just got caught reporting a lower price. Nothing new with false reporting by Pemex

Watch for the next fiasco. AMOL is trying to resurrect the long defunct Mexicana airline. Says it will be privately funded.   Any bets?? 

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