Category: Regions

Mexican state-run oil giant Petroleos Mexicanos (Pemex) will cut exploration investments this year by 25 percent to $1.5 billion. The company expects to maintain investments in exploration within the range of $1.5 billion and $2.0 billion over the next few years. Pemex has 17.7 billion barrels of proven reserves.

In a victory for Mexican President Vicente Fox, Mexico’s Supreme Court ruled the president had the right to allow private companies to generate electricity in the country. The lower house of Congress had asserted that only the government had the right to generate electricity and was seeking to annul all concessions awarded to private companies. The ruling comes as Fox steps up calls for Congress to open the economy to private investment in energy.

Mexico’s state oil company Pemex auctioned a round of short-term bonds worth $44 million on the Mexico City stock exchange last week. The 28-day fixed-rate bonds pay a 9.78 percent fixed annual interest rate. Credit ratings agency Standard and Poor’s assigned its mxA-1+ rating to the issue, Fitch its F1+ (mex) rating and Moody’s its MX-1 rating.

Mexico’s dominant fixed-line telecom company Telmex, owned by Carlos Slim, has agreed to sell its shares in MCI to Verzion Communications. Telmex has 8.1% of the company. The agreement was reached after more than two months of negotiations between MCI, Qwest Communications and Verizon.