Industries sources close to the Dos Bocas project, which encompasses the construction of a major oil refinery by the government of Mexican President López Obrador, have stated that the required investment for the initiative has doubled and may reach US$18bn of final cost.
When first proposed in 2019, Olmeca’s (the refinery’s official name) value was calculated at US$8bn. Last May, the combined value of contracts signed until then totalled U$14bn.
López Obrador, the country’s Energy Ministry and Pemex (Mexico’s NOC) have not yet made any comments on the matter.
The rise in costs come from Mexico’s high inflation and Obrador’s efforts to finish construction in July 2022, which led to a number of additional contracts – sources affirm that the amount of construction-related agreements went from 100 to approximately 270.
After the construction phase is finished in July, full production will take place within six months. Estimated processing capacity for Olmeca is 340,000 barrels of crude per day.
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