Pemex defers projects, cuts 2016 budget by $5.5 billion

Petroleos Mexicanos (Pemex) has reduced its 2016 capital budget by 22% compared with that of 2015 to $20.8 billion. The firm says the sharp decline in crude oil prices “poses serious liquidity problems” necessitating the downward revision.

Deferred projects are expected to comprise $3.6 billion of the reduction, which includes deepwater projects. Operational efficiencies are expected to make up another $1.6 billion.

The firm reported a 2015 net loss of $32 billion, roughly double that of a year ago.