IMCO proposes to cancel the Dos Bocas refinery; The investment has only 2% chance of success

The investment for the Dos Bocas refinery in Tabasco, The Mexican Institute for Competitiveness (IMCO), which conducted a study, which published a study on Tuesday, aims to cancel the construction of the project. 30 thousand different scenarios.

"The analysis concludes that in 98% of the scenarios, the investment project in the Dos Bocas refinery generates more costs than benefits. That is, it destroys the value of Pemex (Petróleos Mexicanos), "the agency said in a statement.

According to data provided by the Ministry of Finance and Public Credit (SHCP), the Dos Bocas refinery requires an investment estimated at 160 billion pesos.

The IMCO study looks at different variables such as refining margins, total investment, construction time and operating costs, but this does not include the costs of additional infrastructure, such as pipelines and storage facilities or the redevelopment of the port.

If this plan continues, a public finance crisis could be generated and it will not pay for the creation of a credible and reasonable business plan for the oil company, said the institute.

"To achieve this, it is necessary that the main company in Mexico put the emphasis on investments that generate value and do not destroy it"He added.

The agency has launched two proposals regarding Pemex: explore other gasoline supply options, such as investments in logistics and fuel storage; and reallocate resources proposed for Dos Bocas to other activities, such as exploration and production.

Rocío Nahle, Secretary of State for Energy, announced on March 19 the launch of the tendering process for the Dos Bocas refinery, in the state of Tabasco , by invitation limited to four companies.

Andrés Manuel López Obrador, President of Mexico, explained that this type of invitation had been chosen to avoid "another case like that of Odebrecht".

The construction of the infrastructure will end in three years, predicts the president.

The works of preparation of the land on which the refinery will be installed will begin the first days of May, announced on April 2 the governor of Tabasco, Adán Augusto López Hernández.