Senate Committee Hosts Talks on Pemex Finances

The Mexican senate's energy committee has hosted a forum on state oil company Pemex's fiscal structure and financial requirements, the upper house said in a statement.

Senators and experts discussed problems facing Pemex finances and possible ways to restructure its fiscal structure.

Former Pemex financial director Ernesto Marcos Giacoman said the oil company needs a certain degree of managerial autonomy and the capacity to operate free of state budgetary constraints.

Pemex needs US$2.20bn of sustained investments to recuperate declining oil and gas reserves, he said. Refining would need US$9.00bn.

Meanwhile, lawmakers are working on proposals to give Pemex greater administrative autonomy, senator Carlos Lozano de la Torre of the PRI opposition party said in a separate senate statement from the forum. The proposals would allow Pemex to make decisions free of the finance and energy ministries.

Senator Ruben Camarillo Ortega of the ruling PAN party called on politicians to work together toward a solution.

Mexican politicians have been calling for reforms as oil output in the country is falling and Pemex is faced with slender operating margins due to what some say is years of accumulated investment restrictions.

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