Mexico’s Pemex demands $6.5 bln more subsidizing for ‘Dos Bocas’ treatment facility – reports, source

By Adriana Barrera and Ana Isabel Martinez

MEXICO CITY, Aug 12 (Reuters) – Mexico’s state-oil organization Pemex mentioned for this present week nearly $6.5 billion in extra subsidizing from the public authority to pay for works at the ‘Dos Bocas’ treatment facility this year, as per a record and two sources acquainted with the matter.

The extra subsidizing is to cover works not at first remembered for the task’s proposition, higher development and startup costs, as indicated by the archive and sources.

Mexican President Andres Manuel Lopez Obrador considers the new treatment facility a mark project and has contended it will assist the country with cutting a longstanding reliance on gas and diesel imports.

The extra financing would take the processing plant’s sticker price to $14.6 billion, the archives and the sources expressed, far over the first spending plan of $8.9 billion.

The archive, seen by Reuters, refers to greater expenses for building “related” parts in framework expected to work the treatment facility as the principal justification behind the increment.

Petroleos Mexicanos’ (Pemex) board supported – by a greater part however not consistent vote – to demand $5.6 billion from the public authority to proceed with the works, as well as $853 million for costs related with the beginning up of the Olmeca treatment facility, generally known as Dos Bocas after the area where it is being constructed.

Pemex will possess and work the processing plant, Mexico’s eighth.

Pemex, Mexico’s money service and energy service didn’t promptly answer for a solicitation for input.

Up until June, $10.3 billion had been spent on the processing plant, the report showed.

In April, sources near the task told Reuters the processing plant would cost no less than $14 billion while different reports have put the last sticker price a few billion bucks higher.

Lopez Obrador said in June the processing plant would wind up costing altogether more than the $8.9 billion that had been supported at first. At the time he assessed a sticker price of $11 billion and $12 billion.