GREY:RNSFF - Post by User
Post by
Anomalloyon Mar 11, 2020 6:11pm
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Post# 30795930
The pressure is on AMLO
The pressure is on AMLO " A dramatic drop in oil prices and a depreciation of Mexican currency are extreme conditions that call for a change in the strategy of President Lpez Obrador's administration in the energy sector, sources said Monday.
https://www.spglobal.com/platts/en/market-insights/latest-news/oil/031020-crude-price-crisis-calls-for-shift-in-mexicos-energy-strategy
Joint venture contracts known as farm-outs are among the easiest, quickest ways to not only keep the finances of Pemex, the state-owned oil firm, afloat, but also to reach the desired crude production the government wants....
Pemex contributes to around 17% of the government's annual budget.
Mexico announced in January it had secured a hedge for an undisclosed portion of its exports at a price of $49/b, the same as estimated in the federal 2020 budget, in what is considered the largest oil hedge among Wall Street banks."