Pemex Refinery Deal May Cost $1 Billion More Than Announced

Petroleos Mexicanos could end up spending about $1.6 billion to take over Royal Dutch Shell Plc’s Deer Park refinery, more than twice the price announced in May, even as its finances are so dismal the government is injecting billions of dollars into the state oil producer, Bloomberg News reported. Pemex, as the company is known, has requested about $1.6 billion to acquire the Houston-area refinery, including a capitalization from Mexico’s National Infrastructure Fund and a bridge loan from commercial banks, according to Pemex documents seen by Bloomberg. The funds will be used to pay off more than $1 billion of the refinery’s debt, a part of the deal that wasn’t clear when it was first announced. Read more.