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More cash for Pemex: US $5-billion cash injection to reduce debt

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pemex

The federal government will give Pemex a US $5-billion cash injection so that the beleaguered state oil company can reduce its debt.

The Secretariat of Finance and Public Credit (SHCP) said in a statement on Wednesday that the “action is part of the government’s ongoing efforts to strengthen the financial stability of Pemex and enhance its profitability and long-term strategic contribution to the Mexican economy.”

The news agency Reuters reported that the US $5 billion appeared to be in addition to a US $4.4 billion support package for Pemex that was unveiled on Sunday in the government’s 2020 budget proposal.

The SHCP said the cash injection “will be funded from financial assets held at the Treasury,” adding that it “will have no impact on the net debt of the Mexican public sector or on the historic public sector borrowing requirements, which is the broadest measure of public sector debt.”

Pemex, which has debt of US $104 billion, said it intends to use the capital for the prepayment of bonds that mature in 2020 and 2023.

The state-run company also said that to refinance short-term debt, it will issue new bonds to mature in seven, 10 and 30 years.

It didn’t disclose the value of the new bonds but said that “proceeds from this transaction will be used to ensure a reduction in the outstanding balance of Pemex’s debt.”

The ratings agency Fitch, which in June downgraded the company’s credit rating to junk, said it would also rate the new debt as one notch into junk status although it added that a successful transaction would “bolster Pemex’s liquidity profile.”

Fitch said that government support for the public utility, which it estimated could total US $9.5 billion in 2019, was only “moderate” considering Pemex’s ongoing heavy tax burden.

The ratings agency also said that “the company continues to severely underinvest in its upstream business, which could lead to further production and reserves decline.”

Pemex’s oil production has fallen for 14 consecutive years due to aging oil fields and a lack of investment but the budget predicts that output will increase to 1.95 million barrels per day by the end of next year.

However, t0 achieve that, Pemex will have to increase production by about 17%, the news agency Bloomberg said, something that hasn’t been achieved for almost four decades. Many analysts said that the forecast petroleum production increase, as well as other assumptions in the budget, are overly optimistic.

Despite Pemex’s problems, President López Obrador said this week that he sees a bright future for the company.

Finance Secretary Arturo Herrera said on Tuesday that the government will “defend the credit rating” of Pemex by making sure that it has money to invest and manage debt.

If Moody’s were to downgrade the state oil company to junk, as many analysts predict will happen in the coming months, institutional investors would be required to sell billions of dollars’ worth of Pemex bonds.

Source: Notimex (sp), Reuters (en) 

Tarahumara woman completes primary school at 81

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81-year-old graduate Ernestina Díaz.
81-year-old graduate Ernestina Díaz.

An 81-year-old Tarahumara woman from Chihuahua has completed her primary school studies and is ready for more.

Federal education officials congratulated Ernestina Díaz for her accomplishment in a Tweet, noting that she is determined to continue on to secondary school and be able to share her knowledge with the children of the community.

The National Institute for Adult Education (INEA) also recognized Díaz’s achievement:

“Stories like that of Ernestina Díaz are what drive us to continue broadening our services and strengthening our programs in order to reach all Mexicans affected by educational exclusion. Congratulations for this well-deserved recognition!”

The institute’s Indigenous-Bilingual Educational Model for Life and Work provides educational reading and writing materials in 64 indigenous languages.

Source: El Universal (sp), Televisa News (sp)

30 Nobel Peace Prize winners confirmed for Mérida summit

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Organizer hopes spirit of peace-making will energize Mexicans.
Organizer hopes spirit of peace-making will energize Mexicans.

Thirty Nobel Peace Prize winners have been confirmed for the 17th World Summit of Nobel Peace Laureates to be held in Mérida, Yucatán, on September 19-22.

With the unprecedented number of speakers, the summit is expected to be the largest peace-promoting event in recent history.

“Every summit has a unique atmosphere gathering Nobel energy and great leaders, experts and inspirational stories, productive discussions and exchange of experiences to address issues that affect our common welfare,” said summit president Ekaterina Zagladina.

The event is taking place in a city was was recently ranked as North America’s second safest.

Zagladina hopes the summit will have a larger effect on the country at large.

“We hope that the spirit and energy of peace-making will energize the Mexican society and foster a common acting for peace and humanity today and in years ahead. We believe that the summit in particular will bring enormous benefits to all participants who are welcome to share examples and best practices for other nations by spreading peace and adding practical value to discussions.”

Among the confirmed laureates are Lech Walesa, former president of Poland; Frederik Willem de Klerk, former president of South Africa; José Ramos-Horta, former president of East Timor; and Juan Manuel Santos, former president of Colombia.

Amnesty International, the United Nations Children’s Fund, the Albert Schweitzer Institute and the Martin Luther King Center are among the Nobel Peace Prize-winning organizations scheduled to attend the summit.

Officials in Mérida say the event will highlight the city’s infrastructure and ability to host large-scale global conferences.

Mexico News Daily

Consumer agency closes gas stations that refused sales to military

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Closed for discrimination (or self-preservation).
Closed for discrimination (or self-preservation).

The consumer protection agency Profeco has closed nine gas stations in Nuevo Laredo, Tamaulipas, for refusing to sell fuel to the armed forces.

Escorted by the soldiers, Profeco officials verified 12 gas stations which had been reported for refusing to sell fuel on Tuesday. Three of the gas stations were already out of service, and Profeco closed the other nine.

Officials put up signs on the gas pumps at the closed stations explaining that the businesses had been closed for illegal discrimination against consumers. But according to the gas stations, it was either refuse to serve security forces or face angry reprisals from organized crime.

In the evening, long lines formed at the gas stations that remained open in Nuevo Laredo. However, Profeco called on consumers not to panic, because 54 of the city’s 66 gas stations were still operating normally.

The action by Profeco was taken in response to a complaint by the state that gas stations were refusing service to security forces because of threats from the Northeast Cartel.

The problem started on Monday, September 2, when stations began refusing to sell fuel to the army and state police.

Police said that when they attempted to fill up the tanks, gas station attendants said they had received “orders from above” not to serve police. Attendants at one gas station said armed men had come by the station and threatened to kill them if they sold gas to the police.

The federal Attorney General’s Office is investigating the issue.

Source: Milenio (sp), El Sol de México (sp)

CFE to boost generation capacity in Baja California Sur

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Flanked by CFE officials, Governor Mendoza announces new generation capacity.
Flanked by CFE officials, Governor Mendoza announces electrical projects.

The Federal Electricity Commission (CFE) will improve electricity generation capacity in Baja California Sur after the state was hit by a series of blackouts due to low capacity earlier this year.

CFE operations director Carlos Andrés Morales Mar announced the plan at an event with Governor Carlos Mendoza Davis.

Morales said that electricity distribution problems in Baja California Sur have been caused by poor maintenance of the state’s generation plants. By October, the CFE will restore 42 megawatts of generation capacity that are currently out of service.

Morales also said that a natural gas power plant being built in Pichilingue will be equipped with energy-saving technology including heat recuperators, and will have a capacity of 170 megawatts when it goes into operation.

By the summer of 2021, another four new generators will be operating, he said. “That will mean the production of 170 megawatts, which will relieve the pressure on the electricity system.”

In total, Morales said that Baja California Sur will have an additional 472 megawatts of generation capacity by the end of 2022.

Governor Mendoza said that Baja California Sur’s current generation capacity should be close to 750 megawatts, while peak consumption is around 550 megawatts. However, due to poor maintenance of generating facilities, capacity is sometimes actually closer to 550 megawatts, forcing the CFE to cut service at peak consumption times.

“In 2020, we will have an additional 280 megawatts, which will make it less likely for us to face this kind of circumstance,” said Mendoza.

The lights went out in Baja California Sur cities at least three times over the summer.

Source: El Sudcaliforniano (sp), Energía a Debate (sp)

Reality show producer released after doing 7 years for Cancún murder

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Beresford shot footage from his Cancún prison cell for a television feature.
Beresford shot footage from his Cancún prison cell for a television feature.

A former reality TV producer who was convicted of murdering his wife in Cancún has been released and is now back home in southern California.

Bruce Beresford-Redman, 47, was released from prison on June 20 after serving a little over half of his 12-year sentence.

Beresford-Redman reported his wife Monica missing during a family vacation to Cancún with their two children in April 2010. Her body was found three days later in a sewer.

The trip was meant to celebrate the woman’s 42nd birthday and mend the couple’s relationship after her husband had an extramarital affair.

Hotel guests told police at the time that they had heard screams in Beresford-Redmans’ hotel room, and investigators found blood on the scene.

The former Survivor and Pimp My Ride producer became the star of his own television show in 2014 when CBS News’ 48 Hours aired Bruce Beresford-Redman’s Prison Diaries, featuring footage he took of his time awaiting trial in Cancún’s Benito Juárez prison.

The state prosecutor had sought the maximum sentence of 50 years in prison, but Beresford-Redman was sentenced to 12, and only served about seven and a half, including four years of time served.

Prisoners in Mexico are eligible for release after serving 60% of their sentence.

Beresford-Redman’s children were 5 and 7 at the time of their mother’s murder and his parents looked after them during his time in prison.

The television producer has always maintained his innocence.

His wife was a well-known restaurant owner in Los Angeles.

Source: NBC News (en)

Self-defense force founder in hot water after calling wives whores

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Calling beneficiaries' wives whores didn't go over well for Mireles.
Calling beneficiaries' wives whores didn't go over well for Mireles.

President López Obrador said on Tuesday that he will ask self-defense force founder José Manuel Mireles to publicly apologize for a slur he made against women and to commit to avoid making a similar indiscretion in the future.

Mireles, now a subdelegate of the State Workers’ Social Security Institute (ISSTE) in Michoacán, referred to the female partners of ISSSTE beneficiaries as “whores” in a video that circulated on social media last week.

The federal official justified his use of the word because he is a native of the Tierra Caliente region of Michoacán.

Mireles subsequently offered a “sincere apology” on Twitter but the president contended that it fell short of what was required, stating that the ISSTE subdelegate needed to make a “sincere commitment to act with respect towards women and all people.”

López Obrador also said that Mireles, a medical doctor by profession, should make a commitment to educate himself about respectful conduct towards women and pledge “never again” to use sexually disparaging language.

The president said he wouldn’t ask the official to resign at this stage because everyone should have a chance to repent and show a  willingness to make amends for their mistakes.

Asked whether Mireles might travel to the National Palace to make the apology, López Obrador told reporters that “wasn’t necessary.”

The remarks by the official, who spent almost three years in jail on charges of possession of unauthorized weapons, was condemned by politicians and women’s groups in Michoacán.

“. . . The language of the official . . . is very serious and an attack [on women],” said Lucila Martínez Manríquez, a state deputy who called on the federal government to sanction Mireles.

Source: El Financiero (sp) 

Freed Ayotzinapa suspect’s cellphone reveals murder, amputations and torture

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Suspect's phone contained some gruesome evidence.
Suspect's phone contained some gruesome evidence.

“They’ll never find them, we turned them into dust and threw them into the water.”

According to federal authorities, that was a cell phone message referring to the 43 students who disappeared in Iguala, Guerrero, in 2014, and was sent by Gildardo “El Gil” López Astudillo, a suspected plaza chief for the Guerreros Unidos gang, to his superior, Sidronio “El Chino” Casarrubias Salgado, days after the young men went missing.

The incriminating text is congruent with the past government’s “historical truth.” In that version of events, the 43 students from the Ayotzinapa Rural Teachers College were intercepted on September 26, 2014 by municipal police and handed over to gang members, who killed them, burned their bodies in a municipal dump and scattered their ashes in a nearby river.

The message, one of several pieces of damning evidence discovered by authorities on López Astudillo’s mobile telephone after his arrest in 2015, clearly implicates the alleged gangster in the disappearance and presumed death of the students, who were allegedly mistaken for members of a rival gang.

Yet a federal judge ordered the release of the key suspect on September 2, ruling that much of the evidence presented against López Astudillo by prosecutors of the former government was obtained illegally.

'El Gil' was a key suspect in the disappearance of 43 students in Guerrero in 2014.
‘El Gil’ was a key suspect in the disappearance of 43 students in Guerrero in 2014.

A report published on Tuesday by the newspaper Milenio said that authorities also found photos on López Astudillo’s phone that show victims of both torture – including people with serious wounds whose limbs had been amputated – and murder.

Other images show weapons, burned-out vehicles and crime scenes where Guerreros Unidos members clashed with gangsters from criminal organizations such as Los Rojos and La Familia Michoacana.

Among other incriminating evidence found on the phone were messages he sent to a contact identified only as Tintán.

On October 5, 2014 – nine days after the mass kidnapping – “El Gil” asked Tintán to send him his personal telephone number. The latter responded that he didn’t have one.

López Astudillo subsequently sent Tintán an extract of a newspaper article that said that authorities in Guerrero had discovered hidden graves that they believed contained the remains of the missing students.

“What do you think about this pedo [problem]?” the alleged gangster asked.

The evidence – as damning as it is – couldn’t be used to keep López Astudillo in prison, a Tamaulipas-based judge ruled, because it, or other proof, was obtained illegally, most likely through the use of torture.

The United Nations said in a 2018 report that 34 people were tortured in connection with the investigation into the disappearance of the 43 students, while a video showing the torture of a suspect was published on YouTube in June.

Human rights undersecretary Alejandro Encinas said last week that the acquittal and release of López Astudillo set “a very grave precedent” that could be used to release more than 50 other people who are in custody as a result of their alleged involvement in the students’ disappearance.

Several suspected Guerreros Unidos members, including the recipient of the “we turned them into dust” message, Sidronio Casarrubias, as well as Felipe Rodríguez Salgado and Erick Sandoval Rodríguez have already been released from prison after they were acquitted of involvement in the students’ disappearance.

The “historical truth” presented by the government of former president Enrique Peña Nieto was widely questioned both within Mexico and internationally and authorities were heavily criticized for their handling of the case. Many people suspect that the army played a role in the students’ disappearance and presumed deaths.

Two days after he was sworn in as president, López Obrador signed a decree to create a super commission to conduct a new investigation into the Ayotzinapa case but to date no new findings have been publicly disclosed.

Source: Milenio (sp) 

President’s chief of staff confirms deepwater reserves go to private sector

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Energy reform is not quite dead after all.
Energy reform is not quite dead after all.

The federal government will cede the business of exploration and oil production in deepwater reserves to the private sector, presidential chief of staff Alfonso Romo said on Monday.

Romo’s remark, made at a business summit in Mexico City, confirms a report published in the Financial Times in late August that said that President López Obrador was poised to reopen private exploration in deepwater oil reserves in the Gulf of Mexico.

Romo also said the government will cede gas production to private companies.

The decision to allow private companies to resume deepwater exploration and production is a major reversal in policy direction for the government of López Obrador.

The president has been a staunch opponent of the previous government’s energy reform, which opened up the oil sector to foreign and private companies after almost 80 years of state control.

It was also intended to bring in expertise that state oil company Pemex did not have, particularly in deepwater drilling.

Pemex officials have said in recent months that the state-owned company would no longer invest in deepwater projects in order to focus on the development of onshore and shallow water reserves.

For private companies to resume deepwater exploration and production, the government will either have to hold new oil block auctions or enter into farm-out agreements. Pemex has already signed one deepwater farm-out agreement with the Australia-based mining multinational BHP.

The government’s apparent willingness to reverse its position and allow greater private participation in the oil and gas sector is welcome news for investors concerned about the slowing Mexican economy and stagnating investment.

According to the Financial Times report, López Obrador’s intention is to kick-start investment and production in the oil sector and prevent the possibility of another credit rating downgrade for the beleaguered state oil company, which has debt in excess of US $100 billion.

New oil and gas block auctions certainly could bring in significant investment to Mexico: one auction held in early 2018 attracted potential investment of almost US $100 billion.

Source: El Financiero (sp) 

Cartel releases video urging citizens to run criminal suspect out of town

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Masked cartel sicarios in the latest CJNG video.
Masked cartel sicarios in the latest CJNG video.

The Jalisco New Generation Cartel (CJNG) has turned up the heat again in Michoacán with the release of a new video on social media appealing to the citizens of Tepalcatepec to send a crime gang suspect packing.

The video shows a man sitting at a table addressing the camera and flanked by at least 20 masked men, most of them armed with Barrett .50-caliber rifles and wearing military-style uniforms bearing the letters CJNG.

The speaker urges citizens of Tepalcatepec to run Juan José “El Abuelo” Farías out of town. The cartel alleges that he leads a local crime gang.

“We want to make clear . . . that our conflict isn’t against the citizens of Tepalcatepec, but against ‘El Abuelo’ and his cartel. Open your eyes, he is using you to carry out his criminal activities for his own benefit and behind your back.”

The speaker said Farías is believed to be part of the Caballeros Templarios cartel or the Viagras gang.

“He’s started to levy protection fees against businesses in the town, while he and his children spend all the money buying new luxury cars,” he said. “If you get rid of ‘El Abuelo’ and his cartel your town will become calm again. The town belongs to the good citizens, which we know are all of you.”

Fighting in the municipality started on August 30 when CJNG gunmen crossed the border from Jalisco to try to take control. Nine people were killed in ensuing clashes and all of the dead were later identified as members of the CJNG.

On Monday, classes resumed at Tepalcatepec schools after the deployment of 200 army troops Friday.

Source: Radio Fórmula (sp), Animal Político (sp)