Prior to its earnings call, the safety record of the Mexican state oil company will undergo examination on Monday due to three distinct fires at Petroleos Mexicanos facilities last Thursday, resulting in a minimum of eight injuries and several individuals currently unaccounted for. (Bloomberg)
A fire erupted at a storage establishment in Ixhuatlan, Veracruz on Thursday, resulting in at least five individuals being unaccounted for and three being hospitalized, according to Pemex. Furthermore, it was reported that five employees sustained injuries in a separate inferno at the combined Maya unit of Pemex’s Minatitlan refinery in Veracruz, which produces 285,000 barrels per day. Pemex also issued a community alert on the same day, notifying about a fire occurring at one of its units in the Deer Park refinery located in Texas.
During a press conference on Friday morning, Mexican President Manuel Andrés López Obrador stated that the fire at the Ixhuatlán storage facility is yet to be extinguished, as it will take more time due to the occurrence of an oil deposit at the site. The blast, which sent huge clouds of smoke into the sky, happened in Ixhuatlán. However, the fire at the Minatitlán refinery was quickly controlled.
While Pemex has stated that its operations at the Deer Park and Minatitlan refineries are back to normal, the company has faced a series of incidents that have put its ESG and social environment record under scrutiny during the rocky start to the year.
Pemex, the energy company of Mexico, is under pressure to improve its oil production after reporting another year of declines. The company is searching for funds to repay about $8 billion in debt and aims to boost output from its refineries in order to meet its goal of making Mexico self-sufficient in energy. By the end of September, the company has the most debt among major oil companies, at approximately $105 billion.
Pemex’s safety issues have attracted international attention. Activists and politicians sparked criticism following the massive explosion and gas fire near its offshore oil platform in 2021, which was nicknamed “the eye of fire.” Pemex was compelled to reduce output by a quarter and another offshore platform accident in the same year led to five fatalities.