A major Pemex oil refinery under construction in Mexico is running over budget and unlikely to come online this year as promised, according to documents seen by Reuters and sources close to the project, despite being a presidential priority.
The Olmeca refinery has an official $8.9 billion price tag approved by the board of the national oil company in 2020. President Andres Manuel Lopez Obrador has long pitched the refinery as essential to weaning Mexico off its dependence on foreign gasoline and diesel supplies, which he argues undermines the country's energy security.
The $12 billion figure was based on 2020 estimates but the sources said the cost of building Olmeca is now around $14 billion, due largely to already-committed contracts through early 2024. The sources did not give details about those contracts. "The minister is committing resources that have not been authorized by the Pemex board and that the finance ministry wants to avoid due to legal issues," said one of the sources, who spoke on condition of anonymity to discuss the project's finances.
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