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New Mexican taxes to transform Pemex capital spending strategy

Journal Article · · Oil and Gas Journal; (United States)
OSTI ID:5562024

Mexico's government this year will introduce petroleum tax reforms that will transform how its state owned petroleum company approaches capital spending. Effective Jan. 1, 1994, the Mexican government began to implement a revamped tax regime designed to accompany the breakup of Petroleos Mexicanos into four new operating subsidiaries. Each of the four new companies -- Pemex Exploration and Production, Pemex Refining, Pemex Natural Gas and Basic Petrochemicals, and Pemex Secondary Petrochemicals -- will be responsible for paying a new income tax. Levies on E and P will be tied to a ring-fence mechanism tailored after the scheme employed by the U.K. and Norwegian governments in the North Sea. The paper discusses the affected investment rationale, the North Sea ring-fence model, other tax changes, and shifting the burden.

OSTI ID:
5562024
Journal Information:
Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 92:3; ISSN OIGJAV; ISSN 0030-1388
Country of Publication:
United States
Language:
English