Mexico’s Pemex said Wednesday it will delay deepwater exploration plans and cut jobs in response to weak oil prices.
The company will also push back some capital projects including major refinery reconfigurations and ultra-low sulfur fuel projects, Reuters said.
“There are … some exploration projects in deep waters, those that carry higher risks, well if we haven’t started them then they will be delayed,” Pemex CEO Emilio Lozoya told Mexico’s Radio Fórmula,
Further details about the projects being delayed have not been disclosed.
Pemex has not commented on how many jobs it expects to cut.
Last week Pemex’s board approved a $4.16 billion spending cut, pulling the company’s budget down 11.5 percent from the 2015 budget approved by Mexico’s congress.
The company said the cuts will minimize any impact on its production and exploration efforts as well as ensure the company can continue to supply Mexico with refined fuel products.
Mexico’s plan to offer the first round of oil contract tenders to international and private bidders will move forward as planned.
Under Mexico’s reformed energy laws Pemex can form joint ventures with other companies to develop and share the cost burden of projects.