• TRIM: Mexico’s highly indebted state-owned oil company, Pemex, announced that it will cut the equivalent of US $1.6 billion from its exploration and production budget as a way to respond to the drastic decline in oil prices and credit downgrades.
• LETTER: In a letter, Pemex CEO Octavio Romero said that the details of the cut will be discussed Thursday in a conference call with investors, to present Q1 2020 results. Romero said that total new assistance from Mexico’s government to Pemex amounts to US $4.6 billion.
• SUPPORT: “Pemex will continue to manage its finances with prudence, maintaining a constant evaluation of the prospects for the oil market…The most important thing is that today, more than ever, Pemex has the absolute support of the government”, the letter to investors reads.
• FALLEN: The measure comes almost two weeks after Moody’s rating agency downgraded Mexico’s cut Pemex debt to junk status. Since taking office in December 2018, reviving Pemex’s dwindling oil production had been one of President Andrés Manuel López Obrador’s goals.
