Pemex is solvent and has enough reserves: González

José Antonio González Anaya, CEO of Petróleos Mexicanos (Pemex), reiterated that the national oil company faces liquidity problems mainly caused by a fall in oil prices worldwide, but that it is solvent and has enough oil reserves that are growing.

Before the Energy Committee of the Chamber of Deputies, González Anaya said that Pemex will continue as one of the flagship companies of Mexico's energy industry.

He said that dispensable expenses such as travels and per diem allowances for 29 billion pesos (US$1.6 billion) will be cut by as part of an austerity program, and that some corporate areas would be merged to save resources, such as the Human Resources Direction, that will be absorbed by the Administrative Direction, and the Research and Technological Development Direction, to be absorbed by Pemex Exploración y Producción.

He added that three refineries would be modernized with the options given by the energy reform, that reduced the need of financing from Pemex.

González explained that the company obtained a credit line from the Development Bank to pay up to 90% of its debts with small and medium suppliers pending since last year.