Pemex, Mexico’s oil major is currently focusing on boosting the country’s oil revenue and it will not commit to be carbon neutral or implement clean energy, media reports said.
It is reported that the government of Mexico is betting on new oil explorations amid the Covid-19 pandemic to boost domestic refinery supply and reverse the years-long decline in oil output.
Marie-Sybille Connan, an analyst with asset manager Allianz Global Investors, told the media, “It will become increasingly challenging for international institutional investors to invest in their bond issuances if they don’t address their sustainability concerns – whether climate, oil spills due to oil theft and health and safety.”
The oil major will not shift its focus on any new developments but work on the development of the proposed $8 billion refinery Dos Bocas in the state of Tabasco.
However, the oil major is currently indebted and depends on bond issuance to finance and refinance its maturities, and the overall financial situation of the company is volatile since the pandemic.
The company’s decision to not take part in green initiatives could prove to be negative as many institutional investors who support green energy have already invested in the company. Therefore, if Pemex continues to avoid taking green initiatives then it could find itself mired in a complex situation to issue debt.
The majority of oil majors like Total and BP are fully committed to their green initiatives.