The Mexican government will cut Pemex’s profit-sharing duty, known as DUC, to 54% by 2021 from the current 65%, the company’s financial director, Alberto Velazquez, said Thursday. “Results from this plan might be huge, spectacular,” Velazquez said at a presentation at the Mexican Petroleum Congress. This is besides the $1.5 billion stimulus package President Andres Manuel Lopez Obrador already announced for Pemex this year. This will increase Pemex’s investment budget by $4.8 billion/year after 2021, representing 65% of Pemex’s current funding requirements for operational purposes, Velazquez said. Next year, Mexico’s federal government will reform Pemex’s hydrocarbon production sharing payments, which represents 80% of its fiscal burden, he added. The government will cut the payment sharing production rate by 7 percentage points in 2020 and by 4 percentage points in 2021, he added. INCREASING PRODUCTION As a result of these plans, Pemex will become a […]