Mexico’s National Refining System
In 2022, crude oil processing by the National Refining System registered an increase of 14.6%, from 711,600 barrels per day in 2021 to 815,800 barrels per day in 2022.
Pemex Transformación Industrial produced 833,500 barrels per day of refined products in 2022, an increase of 15.4% over the 722,500 barrels per day in 2021.
According to Pemex, this performance is the result of the execution of the rehabilitation program of the National Refining System.
Pemex Transformación Industrial converts crude oil into gasoline, jet fuel, diesel, fuel oil, asphalts and lubricants.
It also distributes and markets most of these products throughout Mexico.
During 2022, atmospheric distillation refining capacity remained stable at 1,640,000 barrels per day.
National Refining System
Pemex’s main objectives for 2023 include: continuing to strengthen the refining operation’s performance through its National Refining System rehabilitation program; increasing the processing and production levels of gasoline, diesel, and jet fuel; and advancing its residual utilization projects.
In addition, in January 2022, Pemex purchased Shell Oil Company‘s 50.005% interest in Deer Park, making it the full owner of Deer Park.
The purchase of Deer Park is intended to support Pemex’s objective of strengthening its production of petroleum products to reduce imports and become self-sufficient in fuels.
Deer Park is considered an operating segment.
On March 31, 1993, PMI NASA acquired 49.995% of the Deer Park refinery.
As a general partner of DPRLP, Shell was responsible for the operation and management of the Deer Park refinery (installed capacity of approximately 340,000 barrels of crude oil per day).
The investment in Deer Park as of December 31, 2021 was P6.7 billion, representing PMI NASA’s 49.995% interest in Deer Park.
Indications of impairment were identified, therefore, at the end of 2021, impairment tests were performed on the amount of the investment recognized in Deer Park, and the result was the recognition of a total impairment in the carrying value of the investment as of December 31, 2021 of P6.7 billion which is presented as a separate line item in the statement of comprehensive income.
Prior to the acquisition, the interest in Deer Park was recognized as a joint venture. As a result, the interest was recognized in Pemex’s Consolidated Financial Statements using the equity method.
The activity of Deer Park prior to the business combination was recognized as a commission between the parties of the joint venture and now, the principal activity is the sale of refined products to third parties.
